Peer effects and the choice of adaptation strategies |
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Authors: | Salvatore Di Falco Angela Doku Avichal Mahajan |
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Institution: | Institute of Economics and Econometrics, GSEM, University of Geneva, Geneva, Switzerland |
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Abstract: | This paper analyzes the impact of peer choices on the decision to adapt to climate change in rural Ethiopia. Two IVs are employed (peer-of-peer choices and peer-of-peer information sources) in order to tackle the issue of endogeneity. Through the use of a 3-year panel of farmers in the Nile Basin region, we find that peer choices positively affect the uptake of different adaptation strategies. A 10 percentage point increase in the share of peers using a specific strategy translates to an increase in the likelihood of adaptation between approximately 7% and 14%. This emphasizes the importance of social networks to achieve adaptation to climate change in sub-Saharan Africa. |
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Keywords: | adaptation climate change Ethiopia peer effects Q10 Q12 Q50 Q54 Q56 |
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