CLIMATE CHANGE-FOOD SECURITY-FINANCIAL ASSETS NEXUS: EVIDENCE FROM INDONESIA

Abstract

Purpose: The aim of the study is to investigate the position of household food security when they face climate change and examine the influence of financial asset on food security dynamic. Additionally, we investigate the impact of livelihood assets such as human capital, financial capital, social capital, natural capital, and physical capital on food security dynamic.
 Methodology: There are four categories of food security dynamic namely household that always secure, improved, worse, and always food insecure. Taking the case on Kulonprogo, Yogyakarta Special Region, we use primary data with a longitudinal survey when El Nino (2015) and La Nina (2016). The sample size is 107 households of Program KeluargaHarapan’s receiver. To examine the association between financial assets and food security dynamic we used Multinomial Logit Regression.
 Results: The results of the study indicates that households in the face of climate change did not experience significant changes in food security positions in both seasons (El Nińo and La Nińa). Mild food insecurity still dominates impoverished households.
 Implications: Thus, the proportion of households that experienced improvement or decline was dominated by mild food insecurity. Furthermore, financial assets such as saving and credit can enhance poor household food security. Meanwhile, there are not all household livelihood assets improve food security yet; only human capital and natural capital can improve household food security. The appropriate food security strategies can be the focus on financial sector intervention program.