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Department of Economics, Vijayanagara Srikrishnadevaraya University, Bellary-583105.
Climate change significantly impacts the consumption patterns of farmers. Crop output and quality are affected, resulting in changes in revenues and profits. Given that the agricultural households are producer -consumers, changes in profits translate as changes in disposable incomes, affecting their consumption. This study analyses the changes in consumption resulting from climatic changes after accounting for socio economic factors using heteroscedasticity consistent least squares estimators. Results indicated that consumption increased with increase in climatic factors such as minimum temperature, water deficit and decreased with increase in maximum temperature, rainfall and wind speeds. However, these changes are not statistically significant across social categories among farmers. Farm size is found to be a significant determinant of consumption.
KEYWORDS: Climate Change, consumption function, Farmer’s consumption, Socio Economic analysis.