Adoption of adaptive behavior and its peer effects on grain growers in Jiangxi Province, China

Abstract

ABSTRACT: The global climate has shown an increasing warming trend and the occurrence of abnormal weather has become more frequent as a result. As a leading agricultural province, Jiangxi Province is susceptible to the impacts of weather-related disasters. Utilizing a sample of 324 large grain-farming households in Jiangxi Province and employing the 2-stage least-squares (2SLS) instrumental variables estimator, this study investigates the impact of the adoption of adaptive behavior by grain farmers in response to meteorological disasters on the farming community of the province. The results reveal a significant peer effect on the decision-making process of grain-farming households. Information transmission and role model mechanisms are key ways through which the peer effect manifests. The peer effect on adaptive behavior is more significant in full-time farming households with higher levels of education and larger numbers of family members engaged in agricultural activities than in part-time farming households with lower levels of education and smaller numbers of family members engaged in agricultural activities. This study provides valuable insight into developing a scientifically rational decision-making process for grain-farming households in Jiangxi Province, beyond administrative policy, with the goal of reducing losses incurred by farmers/farming households due to meteorological disasters.