In semi-arid lands, the resilience of farmers facing climate change is uncertain. The main objective of this paper is to explore whether mutual assistance within a group of cotton farmers implies reduced adoption of risk-mitigating strategies. I investigate the case of Burkina Faso where cotton farmers collectively purchase inputs from the cotton wholesale companies and pay for their purchase under the constraint of joint liability. Specifically, I try to understand whether this joint liability is correlated with the adoption of strategies which reduce exposure to climatic risks. I proxy peer pressure by the size of the network and find it to be associated with reduced investment in both incremental and transformational self-protection against weather shocks.
The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.
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