The assessment of economic impact of climate change on Bhutanese agriculture: Ricardian approach

view of shumar village in eastern Bhutan

[View of Shumar Village in Pemagatshel]

Sonam Darjay & Tashi Tshewang

Dec 2024

Background & Outcome

Nestled in the eastern Himalayas, Bhutan, a landlocked country with a population of approximately 756,129 (2021), we depend on agriculture, forest, and fishing sector to produce food and agriculture-based products. These sectors employ 43% of the Bhutanese workforce with more than 60% representing women (FAO; BLSS 2017). As per National Center for Hydrology and Meteorology (NCHM) Bhutan, our country is most vulnerable to climate change consequences such as GLOF due to rising temperature, extreme weather conditions, changing rainfall pattern, drying of streams, and frequent occurrence of flash flood. Since, agriculture is a climate sensitive sector, the economic impact of climate change on it will be a cost to farmers and to the nation. Therefore, we propose conducting an in-depth study in this area using the widely adopted Ricardian model, as it will contribute to the limited body of literature on the economic impacts of climate change on Bhutanese agriculture.

The overall goal of the proposed research study is to employ an Ricardian model (Mendelsohn et al., 1994) to assess the economic and perceptual impacts of climate change on agriculture in Bhutan, with following three specific objectives:

  1. To evaluate farmers’ perceptions of climate change.
  2. To assess the climate change adaptation strategies adopted by farmers.
  3. To analyze the economic impacts of temperature and precipitation variability on agricultural revenues, including projection of future climate impacts on farm revenues

Understanding the economic impact of climate change on agriculture will provide valuable insights to policymakers for designing targeted interventions to enhance farmers’ adaptive capacity and safeguard nation’s food security. The key research question is, how do Bhutanese farmers perceive climate change, their adaption strategies, and economic implications of climate change on agriculture.

 

Key words: Ricardian Model, Climate Change, Impact, Agriculture, Bhutan

Call to Action

We are currently applying for grant funding to carryout this crucial research study. Therefore, if anyone wants to collaborate with us, please feel free to contact us. Thank you!

 

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