Adaptation Implications of Climate-Smart Agriculture in Rural Pakistan

In this paper, we analyze the drivers of the adoption of climate-smart agricultural (CSA) practices and the impact of their adoption on farm net returns and exposure to risks. We use recent farm-level data from three agroecological zones of Pakistan to estimate a multinomial endogenous switching regression for different CSA practices used to reduce the adverse impact of climate change. These strategies include changing input mix, changing cropping calendar, diversifying seed variety, and soil and water conservation measures. The empirical results show that the adoption of different CSA practices is influenced by average rainfall, previous experience of climate-related shocks, and access to climate change information. The findings further reveal that adoption of CSA practices positively and significantly improves farm net returns and reduces farmers' exposure to downside risks and crop failure. The results also reveal significant differences in the impacts of CSA practice adoption on farm net returns in different agroecological zones. Thus, policies aimed at achieving sustainability in agricultural production should consider agroecological, specific, climate-smart solutions.