Etienne Espagne,economist at the research department of the French Development Agency (AFD) and associate researcher at CERDI
Impacts of Extreme Climate Events on Technical Efficiency in Vietnamese Rice Farming
Authors: Yoro Diallo (CERDI), Sébastien Marchand (CERDI) and Etienne Espagne (AFD and CERDI)
The aim of this study is to examine farm household-level impacts of weather extreme events on Vietnamese rice technical efficiency. Vietnam is considered among the most vulnerable countries to climate change, and the Vietnamese economy is highly dependent on rice production that is strongly affected by climate change. A stochastic frontier analysis is applied with census panel data and weather data from 2010 to 2014 to estimate these impacts while controlling for both adaptation strategy and household characteristics. We find that weather shocks measured by the occurrence of floods, typhoons and droughts negatively affect technical efficiency. Also, additional days with a temperature above 31°C dampen technical efficiency and the negative effect is increasing with temperature. Also, this study combines estimated marginal effects of extreme temperature on technical efficiency with future climate scenarios (RCP 4.5 and 8.5) to project the potential impact of hot temperatures till the end of century on rice technical efficiency.
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