Making Smart Choices – Behavioural Traits and Resilience to Environmental Shocks among Farming Households in Thailand
Rasadhika Sharma, Robyn Blake-Rath, Ulrike Grote
Leibniz Universität Hannover, Institute for Environmental Economics and World Trade, Germany
Climate change, in the form of intensified environmental shocks, adds significantly to the existing challenges of small-scale farming households in emerging economies. Households can adopt various response strategies, based on their resilience capacity, to mitigate the impact of shocks on their overall welfare. These can be categorised as absorptive, adaptive or transformative, depending on the intensity of change that they entail. Furthermore, the chosen strategies cannot always be considered as positive as they could negatively impact the household’s welfare outcomes in the future. Therefore, understanding the decisions pertaining the household’s choice of response strategies demands more attention. Literature identifies household financial capital as an important determinant of its resilience capacity. However, evidence on the role of human capital, especially behavioural traits, is scarce. Additionally, most findings on behavioural traits and resilience are based on data from developed countries and may not hold in the context of emerging economies. Therefore, the aim of this paper is to investigate the role of behavioural traits in the household’s choice of response strategies to environmental shocks in rural Thailand. In particular, we examine how behavioural traits influence the decision of households to adopt (i) absorptive, adaptive or transformative and (ii) positive or negative response strategies.
Keywords: Behavioural traits , Environmental shocks, Household decision-making, resilience
Contact Address: Robyn Blake-Rath, Leibniz Universität Hannover, Institute for Environmental Economics and World Trade, Königsworther Platz 1, 30167 Hannover, Germany, e-mail: blake-rathiuw.uni-hannover.de