This study accessed the impact of government aid on farmers’ adaptation to climate change in Nam Phong River Basin, Thailand. This area is prone to flooding between September and October. After the floods, the government generally provides financial compensation to affected farmers of about 70%– 80% of the cropping costs. Our study found that this sort of help from the government is likely to discourage farmers to adapt to climate change. This study found that farmers who believe that the government will step in whenever they suffer losses from floods are more likely to stay with their current crop pattern that carries the highest risk of flooding. In addition, government support was also found to undermine the crop insurance market that the government has been trying to develop.
Farmers’ Adaptation to Flood Disasters: Evidence from the Mekong River Basin in Thailand