Exploring Transformational Adaptation Strategy through Rice Policy Reform in the Philippines

IFPRI Discussion Paper 1865

31 Pages Posted: 1 Oct 2019

See all articles by Angga Pradesha

Angga Pradesha

A member of the CGIAR Consortium - International Food Policy Research Institute (IFPRI)

Sherman Robinson

International Food Policy Research Institute (IFPRI)

Mark W. Rosegrant

International Food Policy Research Institute (IFPRI)

Nicostrato Perez

IFPRI

Timothy S. Thomas

International Food Policy Research Institute (IFPRI)

Date Written: September 10, 2019

Abstract

The Philippines is much more prone to climate change effects than are many other countries. The potential impact on the agriculture sector is of particular concern, given its vital role in the economy and for vulnerable households. Most research warns of the negative impact of climate change on yields for major cereal crops, which could threaten food security and hinder the long-run development process. Incremental adaptation through the introduction of new crop varieties, improved agricultural management practices, and more efficient irrigation are expected to reduce yield losses. However, efforts to promote systemwide adjustment would have broader effects, especially as the risk of climate change increases. This study proposes a new approach for adaptation strategies by exploring policy reform in agriculture as a transformative way to help economic agents adapt to climate change. We specifically explore the rice policy reform currently being pursued by the government through the abolishment of the rice quota program. We find this reform could help transform the agricultural and economic system by allowing scarce resources move from low- to high-productivity sectors, thus increasing the country’s adaptive capacity. However, the rice farmer and vulnerable groups that are prone to climate shocks are adversely affected by the policy. Thus, we introduce alternative intervention policies to complement the reform agenda by providing a cash transfers program to vulnerable groups or a subsidy to support rice farmers. Both offer less impact in economic efficiency gains, but the cash transfer program is superior in terms of supporting the vulnerable group in coping with climate change under the rice reform policy. This shows that the transformational adaptation strategy may create a welfare loss to certain agents but that adding government intervention could act as the second-best policy and become a transition pathway before the whole system transforms to reach the optimal efficiency point when the intervention program is eventually phased out.

Keywords: climate change, rice, food security, food prices, agricultural policies, food policies

Suggested Citation

Pradesha, Angga and Robinson, Sherman and Rosegrant, Mark W. and Perez, Nicostrato and Thomas, Timothy S., Exploring Transformational Adaptation Strategy through Rice Policy Reform in the Philippines (September 10, 2019). IFPRI Discussion Paper 1865, Available at SSRN: https://ssrn.com/abstract=3456717

Angga Pradesha (Contact Author)

A member of the CGIAR Consortium - International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Sherman Robinson

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Mark W. Rosegrant

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

HOME PAGE: http://www.ifpri.org/srstaff/rosegram.htm

Nicostrato Perez

IFPRI ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Timothy S. Thomas

International Food Policy Research Institute (IFPRI) ( email )

2033 K Street, NW
Washington, DC 20006
United States
+1 202-862-5600 (Phone)
+1 202-467-4439 (Fax)

HOME PAGE: http://www.ifpri.org/

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