Transfers, Diversification and Household Risk Strategies: Experimental Evidence with Lessons for Climate Change Adaptation

  title={Transfers, Diversification and Household Risk Strategies: Experimental Evidence with Lessons for Climate Change Adaptation},
  author={Karen Macours and Patrick Premand and Renos Vakis},
  journal={World Bank Policy Research Working Paper Series},
While climate change is likely to increase weather risks in many developing countries, there is little evidence on effective policies to facilitate adaptation. This paper presents experimental evidence on a program in rural Nicaragua aimed at improving households' risk-management through income diversification. The intervention targeted agricultural households exposed to weather shocks related to changes in rainfall and temperature patterns. It combined a conditional cash transfer with… Expand
Do Cash Transfers Foster Resilience? Evidence from Rural Niger
Policy makers are increasingly interested in strategies to promote resilience and mitigate the effects of future climatic shocks. Cash transfer programs have had widely documented positive welfareExpand
Social Protection and Vulnerability to Climate Shocks: a Panel Data Evidence from Rural Ethiopia
It is widely predicted that climate change will have an adverse impact on Ethiopian agriculture and exacerbate the problem of food insecurity. In this context, social protection schemes canExpand
Poor Households'Productive Investments of Cash Transfers: Quasi-Experimental Evidence from Niger
Cash transfer programs have spread rapidly as an instrument to raise household consumption and reduce poverty. Questions remain about the sustainability of cash transfer impacts in low-incomeExpand
Poverty, Access to Credit and Absorption of Weather Shocks: Evidence from Indian Self-Help Groups
In developing countries, most poor households experience extremely variable income because of the combined effects of a large exposure to climatic, economic and policy shocks, and a lack ofExpand
Diversification, Climate Risk and Vulnerability to Poverty: Evidence from Rural Malawi
This paper investigates factors that impact cropland, labour and income diversification decisions and subsequent impacts on welfare. We use geo-referenced household data collected in 2011 fromExpand
Volatility, agricultural risk, and household poverty: micro-evidence from randomized control trials
Households in developing countries are often highly exposed to risk and despite households' risk strategies negative shocks often result in substantial welfare losses. Given the possibility thatExpand
Climate risk management and rural poverty reduction
Abstract Climate variability is a major source of risk to smallholder farmers and pastoralists, particularly in dryland regions. A growing body of evidence links climate-related risk to the extentExpand
Households’ investments in durable and productive assets in Niger: quasi-experimental evidences from a cash transfer project
Cash transfers programs are an increasingly popular tool to alleviate poverty by raising households’ consumption and well-being. However, the sustainability of the short-term improvement induced byExpand
Regional Migration, Insurance and Economic Shocks: Evidence from Nicaragua
Abstract In developing countries most migrants are internal migrants, yet there is limited evidence to show whether internal migrants represent a source of insurance to the original household or viceExpand
Rural Development Policies and Conditional Cash Transfers in Brazil: An Impact Evaluation of the IFAD-Supported Gavi o Project and Potential Synergies with Bolsa Fam lia
Public policies frequently are implemented simultaneously rather than in isolation. We seek to estimate the impacts and possible synergies of a rural development project (Pro-Gavi o) and theExpand


Wealth, weather risk, and the composition and profitability of agricultural investments
Despite the growing evidence that farmers in low-income environments are risk-averse, there has been little empirical evidence on the importance of risk in shaping the actual allocation of productionExpand
Poverty alleviation and consumption insurance: Evidence from PROGRESA in Mexico☆
Abstract This study uses three rounds of panel data between October 1998 and November 1999 and covering 506 villages and 24,000 households in rural Mexico, to examine how the replacement ofExpand
Risk, Crop Choice, and Savings: Evidence from Tanzania
  • S. Dercon
  • Economics
  • Economic Development and Cultural Change
  • 1996
Rural households engaged in agricultural activities face considerable risks in their income process. These income risks are especially important if they result in consumption fluctuations. This isExpand
Agricultural Decisions after Relaxing Credit and Risk Constraints
The investment decisions of small-scale farmers in developing countries are conditioned by their financial environment. Binding credit market constraints and incomplete insurance can reduceExpand
Do the poor insure? A synthesis of the literature on risk and consumption in developing countries
How well do rural households in developing countries mitigate the income risk of the rural sector? There are several sensible reasons why households cannot fully insure consumption against incomeExpand
Changing Households' Investments and Aspirations Through Social Interactions: Evidence from a Randomized Transfer Program
This brief summarizes the results of a gender impact evaluation study, entitled Changing households' investment and aspirations through social interactions : evidence from a randomized transferExpand
Insurance, Credit, and Technology Adoption: Field Experimental Evidence from Malawi
The adoption of new agricultural technologies may be discouraged because of their inherent riskiness. This study implemented a randomized field experiment to ask whether the provision of insuranceExpand
Conditional Cash Transfers: Reducing Present and Future Poverty
Conditional cash transfers (CCTs) are programs that transfer cash, generally to poor households, on the condition that those households make pre specified investments in the human capital of theirExpand
Growth and Risk: Methodology and Micro Evidence
The key finding is that risk substantially reduces growth in this particular setting: the mean capital stock in the sample is (in expectation) 46 percent lower than in the absence of risk. Expand
Investing Cash Transfers to Raise Long Term Living Standards
This brief summarizes the investing cash transfers to raise long term living standards in Mexico. The study measures 18 months of exposure to the program. Households receive benefits for a three yearExpand