Long-term weather variability, portfolio diversification and household welfare

Evidence from rural Togo

authored by

Alirah Emmanuel Weyori, Sabine Liebenehm, Hermann Waibel

Abstract

Using matched georeferenced household panel data and long historical rainfall data from northern Togo, this paper investigates livelihood diversification and households’ welfare outcomes in the face of increasing weather variability. Our results show that long-term rainfall variation is decelerating diversification, while more short-term deviations accelerate crop diversification. Furthermore, diversification is more likely to occur in wealthier households. In terms of welfare implications, our results indicate that livestock diversification in particular has the potential to improve a household’s welfare. Local institutions seem to be supportive of crop and livestock diversification and contribute to decreases in poverty. However, the current arrangement of agricultural institutions in Togo is not effective in mitigating negative effects of climate change. The paper concludes that there is a necessity to strengthen credit, agricultural and market institutions for stimulating diversification in the agricultural portfolio. In terms of policy, the paper recommends targeted policies at stimulating livestock diversification at rural sub-Saharan Africa to strengthen livelihoods and reduce vulnerability to adverse climate change.

Organisation(s)

Institute of Development and Agricultural Economics

Type

Paper

Publication date

2019

Publication status

Published

Sustainable Development Goals

SDG 13 - Climate Action