Conference Agenda
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Daily Overview |
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Climate Change Adaptation: Water Scarcity and Management
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The Benefits and External Costs of Agricultural Adaptation to Surface Water Scarcity Cornell University, United States of America I study how farmers respond to surface water scarcity in California, a setting where they might adapt through socially costly actions like unregulated groundwater extraction, or water conserving actions like land fallowing. Using variation in region-specific sub-annual surface water forecasts, I estimate that farmers increase groundwater use more than they conserve water, especially at the end of the planting season. Meanwhile, farmers drill groundwater wells in response to average declines in surface water availability, fundamentally changing their adaptation choice set. After drilling a well, I find that farmers plant more water-intensive crops and conserve less water. These choices reveal important information about the benefits and costs of adaptation. Comparing my estimates of adaptation choices with existing methods to estimate net benefits, I find that the majority of the benefit of short-run ex-ante adaptation comes from avoiding socially costly ex-post adaptation. Ex-post and long-run adaptation impose substantial external costs and result in a long-term decline in California's ability to adapt. My paper provides one of the most comprehensive studies of agricultural adaptation in terms of the margins of adaptation as well as considering the private and social net benefits of adaptation. Dynamics of Micro-Irrigation Adoption & Disadoption: Evidence from Semi-Arid and Eastern Tropics of India Indian Institute of Technology Bombay, India Rainfall uncertainty and groundwater depletion exacerbates production risks in agriculture. It endangers food security issues in developing countries, such as India, which heavily rely on groundwater resources and the timing of monsoon for production decisions. Micro-irrigation technologies, such as drip and sprinkler systems, are being subsidized and promoted in India for over a decade, can partially offset groundwater scarcity and shape a climate-resilient agriculture pathway. However, the adoption of these technologies are very low. Existing research on MI technology have often mostly relied on static models, failing to explain the dynamic nature of MI technology uptake, its sustained use, and disadoption. Using a high-frequency, plot-level panel data, covering 1,161 agricultural households in the Eastern and Semi-arid Tropics of India, we uncover patterns of adoption over half-a-decade period. Our duration analysis model identifies covariates that accelerates (and decelerates) the speed of MI adoption. We provide novel evidence on water-saving technology adoption response to negative rainfall shocks as well as pinpoint the role of community level adoption and past exposure to adoption as significant determinants of adoption speed. We also find that the households from marginalized castes (SC/ST) face a substantially lower probability of speedy adoption, suggesting the role of social structures in mediating access to technology. We also find evidence of disadoption of MI technologies, which can undermine the welfare gains anticipated under full adoption, warranting further research to understand factors that can deter disadoption. Drought, Mafia and Slavery: Evidence from Italy 1Gran Sasso Science Institute, Italy; 2NOVA School of Business and Economics, Environmental Economics K.C., Portugal We investigate the effects of climate-induced migration on criminal dynamics in destination countries. Leveraging restricted-access monthly and provincial-level data on human trafficking-related crimes, our difference-in-differences estimates show that the severe drought shock occurring in Southern Nigeria in 2016 increased human trafficking-related crimes committed by Nigerian nationals in Italy. Specifically, we estimate an increase of 18 additional crimes attributable to this climate shock, representing a 150% rise relative to pre-shock levels. We then explore the role of existing organized crime structures and community networks in facilitating the exploitation of migrants using provincial-level data. This analysis reveals that a stronger presence of criminal organizations and larger Nigerian communities in certain provinces explains a higher incidence of crimes related to human trafficking. When the Land Dries Up, Big Farms Grow and Small Ones Exit 1INRAE, AgroParisTech, Paris Saclay Applied Economics, University of Paris-Saclay, France; 2RITM, University of Paris-Saclay, France This paper examines the impact of recurrent droughts on farm size and land concentra- tion in France over the period 1970–2022. While droughts in developing countries are often associated with cropland expansion, we show that in France, they instead accelerate land concentration. Using panel data covering French 716 small agricultural regions and more than 344,000 farms, we analyze changes in farmers’ land size following drought episodes. Drought exposure is measured using the Soil Wetness Index, capturing both absolute soil moisture deficits and relative deviations from region-specific historical normals. Our results indicate that severe droughts significantly increase farm size, particularly when they occur during summer and autumn. These effects operate through two main channels: droughts depress agricultural land prices and force smaller farms to exit the sector. Larger farms, by contrast, are better able to expand along the extensive margin, facilitated by the with- drawal of smaller producers. Moreover, we find that climate risk insurance and CAP Pillar I subsidies amplify these concentration dynamics by supporting farm expansion rather than mitigating inequality. Overall, our findings highlight the structural consequences of climate shocks in developed agricultural systems and underscore the need for policy interventions that promote both equity and climate resilience in agriculture. | ||

