ALBERT

Description: Extreme weather events increasingly threaten the economic situation of households and enterprises around the world. Insurance against extreme weather events is among the climate change adaptation instruments that are currently discussed by the policy community. This overview paper provides a synopsis of the state of research on insurance against extreme weather events, outlining advantages and limitations inherent in three main types of insurance: indemnity-based insurance, index-based insurance, and insurance-linked securities. The paper discusses issues related to insurance uptake, distributional effects, misleading incentives and potentially negative side effects, as well as the role of the state.

Description: Agricultural insurance is considered a promising instrument to manage climate risks and to enhance the food security of smallholder farmers. However, despite some positive evidence that insurance positively affects farmers' production strategies, consumption smoothing, asset protection, and asset recovery, the specific effect of insurance on farm households' dietary diversity is largely unexplored. Often, positive effects on dietary diversity are presumed through income gains that might arise from investment returns of profitable production activities and cash gains from payouts. We argue that there exist multiple other causal mechanisms through which insurance may even negatively influence farm households’ dietary diversity. The current article elaborates these mechanisms and provides recommendations on ways to avoid unintended negative effects on dietary diversity which should be taken into account by governments and donors if they continue to further promote insurance.

Description: Extreme weather conditions in the face of due to climate change often disproportionately affects the weakest members of society. Agricultural insurance programs that are specifically designed specifically for smallholders in developing countries are valuable tools that can help farmers to cope with the resulting risks. A broad range of methods including household surveys, experimental games, and agent-based models have been used to assess and improve the effectiveness of such climate insurance products. In addition Furthermore, process-based crop models have been used to derive suitable insurance indices. However, climate change raises specific socioeconomic andas well as environmental challenges that need to be considered when designing insurance schemes. We argue that, in light of these pressing challenges, some of the methodological approaches currently applied to study climate insurance reach their limits when applied independently. This has fundamental implications. On the one hand, not all undesired side effects of insurance can be detected and, on the other hand, insurance indices cannot be derived sufficiently well. We therefore advocate a sound combination of different methods, especially by linking empirical analyses and modelling, and underline the resulting potential with the help of stylized examples. Our study highlights how methodological synergies can make climate insurance products more effective in supporting the most vulnerable households, especially under changing climatic conditions.

Description: Burkina Faso has a high socio-economic dependency on agriculture, a sector which is strongly influenced by weather-related factors and increasingly challenged by the impacts of climate change. Currently, only limited information on climate risks and its impacts is available for the agricultural sector in the country. Therefore, this study aims to provide a comprehensive climate risk analysis including a thorough evaluation of four potential adaptation strategies that can guide local decision makers on adaptation planning and implementation in Burkina Faso. The impact assessment consists of several steps including climate projections based on two emissions scenarios (SSP3-RCP7.0 and SSP1-RCP2.6), hydro-logical modelling on water availability changes, modelling and comparison of future yields of four widely used crops (maize, sorghum, millet and cowpeas) and an assessment of livestock production under future climate conditions. Based on the projected climate change impacts on agricultural production, four different adapta-tion strategies ((1) Integrated soil fertility ma-nagement (ISFM), (2) irrigation, (3) improved seeds and (4) climate information services (CIS)) suggested and selected by different national stakeholders were analysed regarding their potential to risk mitigation, (cost-)effectiveness and suitability for local conditions. The analyses have been further complemented by expert- and literature-based assessments, semi-structured key informant interviews and two stakeholder work-shops. The results show that the mean daily temperature is on the rise and projected to increase further by 0.6°C (2030) up to 1.1°C (2090) under SSP1-RCP2.6 and by 0.5°C (2030) up to 3.6°C (2090) under SSP3-RCP7.0 in reference to 2004, dependent on future greenhouse gas emissions. Some un-certainty exists for annual precipitation projections, with slight increases until 2050 followed by a slight decrease under SSP1-RCP2.6 and continuous increase under SSP3-RCP7.0 with high year-to-year variability. Projected impacts of cli-mate change on yields vary between regions and show partly opposing trends. Some regions in the north show increasing yields (up to +30% in SSP1-RCP2.6 and up to +20% in SSP3-RCP7.0), while few regions in the south present decreasing yields (down to -30% in SSP1-RCP2.6 and down to -20% in SSP3-RCP7.0). Crop models show that the areas suitable for cowpeas will decrease in Burkina Faso under future climate change conditions while the suitability for maize, millet and sorghum will remain stable. Moreover, the potential to produce multiple crops will become more and more difficult, which limits farmers’ diversification options. Regarding the livestock sector, it seems very likely that the grazing potential will decrease under both climate change scenarios with higher decreases under SSP1-RCP2.6 than under SSP3-RCP7.0. All four adaptation strategies were found to be economically beneficial, can have a high potential for risk mitigation and entail different co-benefits. Particularly, ISFM can be highly recommended for smallholder farmers, resulting in very positive effects for societies and environment. Irrigation and improved seeds have a high potential to improve livelihoods especially in Northern Burkina Faso, but are also complex, costly and support-intensive adaptation strategies. Lastly, CIS can support farmers to make informed decisions and thereby reduce the impact of climate risks. Generally, a combination of different adaptation strategies can entail additional benefits and active stakeholder engagement as well as participatory approaches are needed to ensure the feasibility and long-term sustainability of adaptation strategies. The findings of this study can help to inform national and local adaptation and agricultural development planning and investments in order to strengthen the resilience of the agricultural sector and especially of smallholder farmers against a changing climate.

Description: Niger has a high socio-economic dependency on agriculture which is strongly influenced by weather-related factors and highly vulnerable to climate change. Currently, only limited information on climate risks and its impacts is available for the agricultural sector in the country. Therefore, this study aims to provide a comprehensive climate risk analysis including a thorough evaluation of four potential adaptation strategies that can guide local decision makers on adaptation planning and implementation in Niger: (1) agroforestry and farmer managed natural regeneration (FMNR) of trees, (2) integrated soil fertility management (ISFM), (3) irrigation and (4) improved fodder management for livestock. The impact assessment includes climate projections based on two future emissions scenarios (SSP3-RCP7.0 and SSP1-RCP2.6), hydrological modelling on water availability, modelling and comparison of future yields of four dominant crops (sorghum, millet, maize and cowpeas) and an as-sessment of livestock production under future climate conditions. Based on the projected climate change impacts on agricultural production, the four adaptation strategies suggested by different national stakeholders were analysed regarding their potential to risk mitigation, cost-effectiveness and suitability for local conditions. The analyses have been complemented by expert- and literature-based assessments, semi-structured interviews and two stakeholder workshops. The results show that the mean daily temperature is projected to increase further in Niger, up to +1.3 °C (SSP1-RCP2.6) and +4.2 °C (SSP3-RCP7.0) by 2090, in reference to 2004. The mean annual precipitation sum is also projected to increase until 2050 under both emissions scenarios, with a slight decrease in the interannual variability. In the second half of the century, this trend in precipitation is likely to continue (SSP3-RCP7.0) or decrease slightly (SSP1-RCP2.6), while the year-to-year variability would increase. Greater annual rates of groundwater recharge due to increasing precipitation amounts and higher annual mean river discharge are expected until mid-century. Sorghum yields would decline in general, by 20-50% (SSP1-RCP2.6) or 40-75% (SSP3-RCP7.0) by 2090, compared to 2005. Crop models hinted at an increase in the suitability of sorghum and millet, and no significant change for maize and cowpeas in Niger under both emissions scenarios. In addition, the potential for multiple cropping would de-crease from mid-century, limiting farmers’ diversification options. Regarding the livestock sector, the grazing potential is likely to decrease in the south and increase in the central regions of Niger, under SSP1-RCP2.6, while it is expected to increase in the whole country under SSP3-RCP7.0. All four adaptation strategies were found to be economically beneficial, risk-independent, with a medium to high risk mitigation potential, and can bring about various co-benefits. FMNR practice can be highly recommended, as the upscaling potential is high and the climate resilience of local livelihoods will be strengthened. ISFM can help to improve water use efficiency and benefit from positive environmental and social outcomes. Irrigation has a medium potential to improve livelihoods of smallholder farmers but is also a support-intensive adaptation strategy that needs to be carefully implemented in order to avoid overexploitation of local water resources. Lastly, improved fodder management, especially al-falfa production, contributes to building up resilience of livestock farming systems and affects women and youth employment positively. Gener-ally, a combination of different adaptation strategies can yield additional benefits and active stake-holder engagement as well as participatory ap-proaches are needed to ensure the feasibility and sustainability of adaptation strategies. The findings of this study can help to inform national and local adaptation as well as development planning and investments in order to strengthen the climate resilience of the Nigerien agricultural sector and especially of smallholder farmers.

Description: Rigorous experiments show that nutrition-sensitive intervention programs can contribute to improved food and nutrition security (FNS) of rural households in low-and middle-income countries. Targeted individuals may, however, choose to engage with the intervention package at different intensities. It is yet unclear to what extent individual participation in more interventions influences FNS outcomes. Positive links would justify efforts by development stakeholders to diversify intervention packages and enable, encourage, or incentivize beneficiaries to participate in many different interventions. Using cross-sectional data from 2733 households across seven countries, we first estimate effects of a multi-sectoral intervention program using probit regressions, propensity score matching, and inverse probability weighted regression adjustment. Over the course of the three-year program, beneficiaries joined 8.3 interventions, on average. We find that targeted households were 6–9 percent more likely to be food secure, and targeted women and children were 15–17 percent more likely to consume a nutrient-adequate diet. Our estimates show that, across three indicators of FNS, each additional intervention increased the probability of achieving positive outcomes by about 1 percent. We conclude that investments in diversified intervention programs can be justified by stronger FNS benefits. Development stakeholders could enable strong individual participation by reducing transaction and opportunity costs of participation.