Analysis of farmers’ stated risk using hypothetical lotteries and their perceptions of climate change in the northwest of Mexico
Document typeConference lecture
PublisherAsociación Española de Economía Agraria
Rights accessOpen Access
The risk attitude affects farmers' production and investment decisions. It is a factor related to their environmental attitudes and towards climate change (CC). The multiple price list (MPL) method was applied to identify the level of stated risk by farmers and subsequently related to their socioeconomic characteristics, environmental attitudes and CC' perceptions. The data was collected through a face-toface survey of 370 farmers in irrigation district 076 in northwestern Mexico. The results showed a risk level of 0.32 according to the Constant Relative Risk Aversion (CRRA) coefficient, locating farmers of the region in a risk-averse group. The heterogeneity analysis showed that socioeconomic factors and perceptions of CC are related to the farmers´ stated risk. Farmers who are young women, with a tendency to use public support for structural investment, were shown to be risk-tolerant. Farmers considered floods, hail, diseases, pests, and weed growth incidences to be the most frequent weather patterns in the region.
CitationOrduño, M.; Kallas, Z.; Ornelas, S. Analysis of farmers’ stated risk using hypothetical lotteries and their perceptions of climate change in the northwest of Mexico. A: Congreso de Economía Agraria. "XII Congreso de Economía Agraria: la sostenibilidad agro-territorial desde la Europa Atlántica: Lugo, 4-6 setp. 2019". Asociación Española de Economía Agraria, 2019, p. 75-78.