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Retrenchment under climate-driven risks in subsistence farming communities.

Nicolas Choquette-Levy^1,2,3,4, Dirgha Ghimire^5,6, Michael Oppenheimer^4,7,8

¹Department of Geosciences, The Pennsylvania State University, University Park, PA USA.

Population and Environment

|May 23, 2025

Summary

This summary is machine-generated.

Smallholder farmers perceive climate risks but hesitate to diversify livelihoods. Extreme weather events, like droughts and floods, cause farmers to rely more on farming, potentially trapping them in poverty.

Keywords:

Climate adaptation Climate risk Livelihood diversification Nepal Poverty traps Risk perceptions Smallholder farmers

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Area of Science:

Agricultural Economics
Climate Change Adaptation
Rural Livelihoods

Background:

Climate risks increasingly impact smallholder farmers' decisions.
Livelihood diversification, a key resilience strategy, often lags behind climate risk awareness.

Purpose of the Study:

Investigate mechanisms behind delayed livelihood diversification among farmers.
Analyze how information, social capital, and past hazards influence climate risk perception and adaptation.

Main Methods:

Survey of 500 farming households in Nepal's Chitwan Valley.
Cross-sectional and time series econometric analysis.
Examination of farmers' information sources, social capital, and prior climate hazard exposure.

Main Results:

Climate risks are salient, but diversification strategies are perceived as riskier.
Droughts and floods increase reliance on farming income (retrenchment response).
Financial and psychological factors drive this retrenchment, potentially worsening poverty traps.

Conclusions:

Resilience-building efforts must address perceived risks of diversification.
Financial constraints and loss aversion significantly influence farmer responses to climate shocks.
Interventions should consider these factors to prevent environmentally driven poverty traps.