Risk Aversion, Crop Diversification, and Food Security

30 Pages Posted: 17 Nov 2022

See all articles by Sunghun Lim

Sunghun Lim

Louisiana State University, Department of Agricultural Economics and Agribusiness

Date Written: November 3, 2022

Abstract

This paper investigates the relationship between risk aversion, crop diversification, and food security. In poor agrarian countries, farmers’ risk aversions are inherently linked to their food security. However, there is a lack of empirical evidence to understand the mechanism through which risk aversion operates, affecting food security. Using field experiment data from rural Ethiopia, our mediation analysis reveals that crop diversity is a mechanism by which farmers’ risk aversion negatively influences food security. Our findings illuminate the importance of considering farmers’ risk preferences to develop effective policies that promote crop diversification among poor smallholder farmers to reduce food insecurity.

Keywords: Risk Aversion, Food Security, Crop Diversity

JEL Classification: O13, O14, O55, Q12

Suggested Citation

Lim, Sunghun, Risk Aversion, Crop Diversification, and Food Security (November 3, 2022). Available at SSRN: https://ssrn.com/abstract=4267438 or http://dx.doi.org/10.2139/ssrn.4267438

Sunghun Lim (Contact Author)

Louisiana State University, Department of Agricultural Economics and Agribusiness ( email )

273 Martin D. Woodin Hall Louisiana State Universi
Baton Rouge, LA 70803
United States
225-578-2766 (Phone)

HOME PAGE: http://sites.google.com/view/limsunghun

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