Publication: Too Little Too Late : Welfare Impacts of Rainfall Shocks in Rural Indonesia
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Date
2012-11-20
ISSN
0007-4918
Published
2012-11-20
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We use regression analysis to assess the potential welfare impacts in rural Indonesia of two types of shock: a delay in monsoon onset; and a significant shortfall in rain during the 90-day post-onset period. Focusing on households with family farm businesses, we find that a delay in monsoon onset does not have a significant effect on the welfare of rice farmers. However, rice farm households located in areas exposed to low rainfall following the monsoon are negatively affected. Such households appear to be able to protect their food expenditure in the face of weather shocks, but at the expense of their non-food expenditure. We also use propensity score matching to identify community programs that might moderate the impact of this type of shock. We find that access to credit and public works projects has the strongest moderating effect. This is an important consideration for the design and implementation of adaptation strategies.
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Publication Too Little Too Late : Welfare Impacts of Rainfall Shocks in Rural Indonesia(2011-03-01)The authors use regression analysis to assess the potential welfare impact of rainfall shocks in rural Indonesia. In particular, they consider two shocks: (i) a delay in the onset of monsoon and (ii) a significant shortfall in the amount of rain in the 90 day post-onset period. Focusing on households with family farm businesses, the analysis finds that a delay in the monsoon onset does not have a significant impact on the welfare of rice farmers. However, rice farm households located in areas exposed to low rainfall following the monsoon are negatively affected. Rice farm households appear to be able to protect their food expenditure in the face of weather shocks at the expense of lower nonfood expenditures per capita. The authors use propensity score matching to identify community programs that might moderate the welfare impact of this type of shock. 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