CLIMATE CHANGE ADAPTATION STRATEGIES, FARM PERFORMANCE AND POVERTY REDUCTION AMONG SMALLHOLDER FARMING HOUSEHOLDS IN GHANA

Abstract

Many previous studies that evaluated the impact of adaptation to climate change on poverty failed to assess how the gains from adaptation can be assessed from the multidimensional poverty perspective. In this study, survey data were used to examine the effect of adoption of adaptation strategies comprising irrigation, soil conservation, and enhanced cropping calendar management, on farm performance and multi-dimensional poverty index. Multinomial Endogenous Treatment Effect (METE) model which accounts for selectivity bias due to both observed and unobserved factors was employed. The results showed that a higher crop output and a greater reduction in downside risk exposure were associated with adoption of adaptation strategies as a package. The results further revealed that using all three strategies led to a significant reduction in multi-dimensional poverty among adapters. This suggests that adaptation is not only an ex-ante strategy against risk exposure, but an effective means of achieving the Sustainable Development Goals. It is therefore important for policy makers to consider the promotion of irrigation, soil conservation and cropping calendar management as effective strategies that could enhance farm performance and reduce household poverty. Intensifying extension and farmer education will also enhance adaptation to climate change.