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Natural Hazards

, Volume 82, Issue 3, pp 1931–1945 | Cite as

Farmers versus nature: managing disaster risks at farm level

  • Raza UllahEmail author
  • Ganesh P. Shivakoti
  • Asif Kamran
  • Farhad Zulfiqar
Original Paper

Abstract

Farmers have number of options available in managing disaster risks at farm and many of them utilize these risk management tools simultaneously. However, previous studies have ignored the correlation among the risk management adoption decisions. This study, therefore, aimed at investigating factors affecting the adoption of off-farm diversification and agricultural credit to manage catastrophic risks while taking into account the contemporaneous correlation in the decisions to adopt the two risk management tools simultaneously. Bivariate and multinomial probit approaches are applied to data collected from four districts of Khyber Pakhtunkhwa Province in Pakistan. Findings revealed a strong correlation between the decisions to adopt the two risk management tools and conclude that adopting one risk management tool may induce farmers to adopt the other tool at the same time. Moreover, socioeconomic characteristics, losses due to natural disasters, farmers’ risk perceptions and their risk attitude play significant role in shaping their decisions of adopting risk management tools.

Keywords

Disaster risk Risk management Simultaneous adoption Bivariate probit Multinomial probit 

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Copyright information

© Springer Science+Business Media Dordrecht 2016

Authors and Affiliations

  • Raza Ullah
    • 1
    Email author
  • Ganesh P. Shivakoti
    • 2
  • Asif Kamran
    • 3
  • Farhad Zulfiqar
    • 4
  1. 1.Department of Agricultural and Applied EconomicsThe University of Agriculture PeshawarPeshawarPakistan
  2. 2.Natural Resources Management, School of Environment, Resources and DevelopmentAsian Institute of TechnologyKhlong LuangThailand
  3. 3.Nuclear Institute for Agriculture and Biology (NIAB)FaisalabadPakistan
  4. 4.Regional and Rural Development Planning (RRDP), School of Environment, Resources and DevelopmentAsian Institute of TechnologyKhlong LuangThailand

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