LAUSR

Abstract The effectiveness of adaptation strategies is crucial for reducing the costs of climate change. Using plot-level data from a specifically designed survey conducted in Pakistan, we investigate the productive benefits for farmers who adapt to climate change. The impact of implementing on-farm adaptation strategies is estimated separately for two staple crops: wheat and rice. We employ propensity score matching and endogenous switching regressions to account for the possibility that farmers self-select into adaptation. Estimated productivity gains are positive and significant for rice farmers who adapted, but negligible for wheat. Counterfactual gains for non-adapters were significantly positive, which is potentially a sign of transactions costs to adaptation. Other factors associated with adaptation were formal credit and extension, underscoring the importance of addressing institutional and informational constraints that inhibit farmers from improving their farming practices. The findings provide evidence for the Pakistani Planning and Development Department's ongoing assessment of climate-related agricultural losses.