Climate change adaptation and smallholder farmers welfare: Empirical evidence from the Sahelian Region of West Africa

Global climate change has threatened sustainable agricultural growth over the years, severely affecting food sufficiency and the livelihood of farmers. The Climate-Smart Agricultural Technologies (CSAT), as a form of adaptation, offer pathways for mitigating the negative effect of climate change on crop producers in developing countries. This study uses cross-country (Mali and Niger) cross-sectional data to examine the welfare (proxied by crop sales revenue and income) impact of multiple adoptions of CSAT on smallholder farm households. To control for potential endogeneity that leads to bias estimates, we employ the multinomial endogenous treatment effect (METE) model, complemented with the inverse probability weighted regression adjustment (IPWRA) for the analysis. The result reveals that household (education, location, and assets) and plot (plot size, plot topography, and soil fertility) characteristics, institutional factors (farmer-based organization, access to formal credit, and extension service) and crop disease shock significantly influence different combinations of CSAT adoption. The impact estimates show that adopting joint combinations of CSAT leads to higher crop sales revenue and income among the farmers in most cases. These findings suggest that the adoption of CSAT as a package should be encouraged and disseminated in the West Africa Sahel region. Moreover, some sociodemographic and institutional factors such as education, credit access, farmer-based organizations, and extension services could be strengthened for easy and rapid adoption of CSAT by smallholder farmers, which subsequently improves their economic welfare.