Abstract
Agricultural diversification efforts towards sustainable agriculture generates environmental and economic benefits. Climate change and agricultural production are characterized by a complex cause-effect relationship. In the present study, the primary dataset is collected through an interview-based survey from 410 farmers in 3 districts located in different agro-ecological zones of Punjab, Pakistan. Detailed analysis is conducted by employing the Gaussian treatment effects approach. Results of the study show that the farmers who adopted agricultural diversification to mitigate the impact of climate change were less and insignificantly benefited e.g., on an average of RS 95,260 (US $635) per annum whereas non-adopted farmers lost their farm income on an average of RS 115,750 (US $772) per annum if they had practiced the agricultural diversification. Moreover, determinants of agricultural diversification such as demographic and institutional indicators were significant and larger effects to adopt as compared to social indicators. This study suggests that policies should be designed in the regional context particularly related to the improvement in demographic characteristics and institutional factors such as providing subsidies, training, and awareness to the farmers, particularly to those who practice agricultural diversification. These measures will help to raise the farmers’ adaptive capacity for the adoption of agricultural diversification, and it will enable them to generate tangible benefits by increasing income through adopting sustainable agricultural livelihood.
Highlights
The computed Wald test statistic for the hypothesis independence (H0 : ρ = 0) between the probability of agricultural diversification and the income of farm households was rejected (Wald statistic = 9.6, d.f. = 1, p < 0.05). It shows that the errors computed between the decision in agricultural diversification and the agricultural income of farmer households are dependent after controlling exogenous regressors in the Gaussian treatment effect (GTE) model
Results of the Maximum Likelihood GTE model show that the farmers who adopted agricultural diversification to mitigate the impact of climate change had less and an insignificant income on an average of RS 95,260 (US $635) per annum than non-adopted farmers, who are significantly losing a farm income on an average of RS 115,750 (US $772)
We have examined the impact of agricultural diversification on the farm income earned by farm households using a Gaussian treatment effect model
Summary
As the agriculture sector is affected by pests, diseases, and weather variability affecting crop and livestock production, climate change and environmental shocks amplify risks that affect the farm livelihoods in different ways. By adopting new technology and innovative measures for crops and livestock production, farmers are more inclined to adapt their sustainable livelihoods to mitigate the impact of precipitation deficits and climate shocks. This study identifies factors that can play a vital role in the adoption of agricultural diversity in coping with climate change, while revealing the impact of diversification adoption on income, which is perceived as a livelihood indicator for the farmer In this context, the objectives described above were achieved using very different methodological arguments, such as average treatment effect (ATE) and average treatment effects on both treated (ATT) and untreated (ATU).
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
