Economic impacts of extreme weather events on farm households: Evidence from Thailand

Crawford School of Public Policy | Arndt-Corden Department of Economics

Event details

PhD Seminar (Econ)

Date & time

Friday 05 July 2013


Seminar Room 1 Stanner Building 37 Crawford School


Sirikarn Lertamphainont


Robert Sparrow

This study investigates the impacts of extreme rainfall shocks on farm households’ welfare in Thailand using unique nationwide repeated cross-sectional farm household survey data, available annually from 2006 to 2010. Exogenous provincial measures of rainfall shocks are constructed from daily and monthly rainfall data to capture the frequency and intensity of drought and excessive rainfall events during the study period.

Controlling for district and time fixed effects as well as key household and farm characteristics, the estimations show significant negative impacts of these extreme weather events on economic income, especially from crop production. Small but significant declines in aggregate consumption in response to these shocks are also evidenced.

The effect, however, is less severe relative to that on total income, signalling the existence of some forms of consumption smoothing mechanisms. Participating in non-farm jobs, saving, and stocking of crop, livestock and assets are found to reduce negative consequences of rainfall shocks. In addition, asset-poor households are found to be more vulnerable to shocks relative to the better off households, signifying the evidence of wealth-differentiated access to effective coping strategies among Thai farm households.

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