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\hypersetup{pdftitle={Does Adaptation to Climate Change Provide Food Security? A Micro"=perspective from Ethiopia },pdfauthor={Marcella Veronesi, Salvatore Di Falco, Mahmud Yesuf},pdfsubject={Tropentag 2010: Abstract},pdfkeywords={Adaptation, climate change, endogenous switching, Ethiopia, food security, production, spatial data},pdfpagemode=None,colorlinks=true}
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\parbox[b]{13.4cm}{\centering \large{\textbf{Tropentag, September 14-16, 2010, Zurich}}\\[1ex] \Large{``World Food System  ---\\A Contribution from Europe''\\[2ex]}}
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\Large{\textbf{Does Adaptation to Climate Change Provide Food Security? A Micro"=perspective from Ethiopia \footnote{\textbf{Contact Address:} Marcella Veronesi, ETH Zurich, Institute for Environmental Decisions, Chair of Environmental Policy and Economics, Universitätstrasse 22, 8001~Zurich, Switzerland, \mbox{e-mail}: \email{marcella.veronesi@env.ethz.ch}}\\[0.8ex]}}
\normalsize{\textsc{Marcella Veronesi$^{1}$, Salvatore Di Falco$^{2}$, Mahmud Yesuf$^{3}$}}
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\begin{itemize*}
\item[]{\small{\textit{$^{1}$ETH Zurich, Institute for Environmental Decisions, Chair of Environmental Policy and Economics, Switzerland}}}
\item[]{\small{\textit{$^{2}$London School of Economics, Department of Geography and Environment, United Kingdom}}}
\item[]{\small{\textit{$^{3}$Addis Ababa University, Department of Economics, Ethiopia}}}
\end{itemize*}
\index[author]{Veronesi, Marcella}
\index[author]{Di Falco, Salvatore}
\index[author]{Yesuf, Mahmud}
\begin{center}
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\textbf{Abstract}
\begin{abstract}
\normalsize{
This paper contributes to the literature on climate change adaptation on agriculture by providing a micro perspective on both the impact of climate change adaptation on agriculture production, and the issue of adaptation and food security. 



We use a very rich farm level survey of 1000 farms producing cereal crops in the Nile Basin, Ethiopia. We examine the driving forces behind farmers' decisions to adapt to climate change, and the impact of adaptation on farmers' food production. The role of information on climate change, access to credit and extension services is also assessed. In addition, we investigate whether there are differences in the food production functions of farm households that adapted and those that did not adapt. 



We estimate a simultaneous equations model with endogenous switching to account for the heterogeneity in the decision to adapt or not, and for unobservable characteristics of farmers and their farm. We compare the expected food production under the actual and counterfactual cases that the farm household adapted or not to climate change. 



We find that the group of farm households that adapted has systematically different characteristics than the group of farm households that did not adapt. The relationship between production and average temperature is inverted U-shaped for farm households that adapted, while it is U-shaped for farm households that did not adapt, and vice versa in the case of precipitation. These differences represent sources of variation between the two groups that the estimation of an ordinary least squares model including a dummy variable for adapting or not to climate change cannot take into account. We find that adaptation increases food production, however, the impact of adaptation on food production is smaller for the farm households that actually did adapt than for the farm households that did not adapt in the counterfactual case that they adapted. These results are particularly important to design effective adaptation strategies to cope with the potential impacts of climate change.}

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\noindent \textbf{Keywords:} Adaptation, climate change, endogenous switching, Ethiopia, food security, production, spatial data
\index[key]{Adaptation}
\index[key]{Climate change}
\index[key]{Endogenous switching}
\index[key]{Ethiopia}
\index[key]{Food!security}
\index[key]{Production}
\index[key]{Spatial!data}
\end{document}