Improving Climate Resilience: The Role of Institutions, the Adoption of Climate-Smart Agriculture and Fertilizer Subsidy Policies in Benin

Abstract

This thesis examines the resilience of smallholder farmers in the Republic of Benin by analyzing the interconnected roles of institutional frameworks, Climate-Smart Agriculture (CSA) adoption, and policy interventions. It addresses how institutional support, CSA adoption, and targeted policy reforms can build resilience and promote sustainable agriculture. The thesis is structured around three main objectives. First, it investigates how governance structures, stakeholder interventions, and policy environments influence CSA adoption. Second, it assesses the impact of CSA adoption on the climate-smartness of smallholder farming systems in northern and central Benin, considering productivity, resilience, and greenhouse gas (GHG) mitigation. Third, it evaluates the sustainability of fertilizer subsidy policies, focusing on their economic benefits and environmental consequences. To achieve these objectives, the thesis combines econometric and bioeconomic models. An ordered probit model with instrumental variables is applied to secondary data for the first objective. The second and third objectives rely on household survey data and are analyzed using a multinomial endogenous switching regression and an economic mathematical programming model, respectively. Findings show that adaptation-oriented policies and stakeholder engagement promote CSA adoption, while mitigation-focused interventions may discourage it, highlighting a potential trade-off. Comprehensive CSA packages, especially those incorporating water management and integrated systems, are more effective for sustainable outcomes. Adoption is influenced by household characteristics such as education, marital status, labor, and access to land. Increased fertilizer subsidies improve farm revenues but also raise GHG emissions, with the Eco-Inefficiency Index indicating that marginal profit gains often come at the cost of environmental sustainability. Overall, this thesis emphasizes the importance of developing balanced policies that align adaptation and mitigation goals to promote resilient and sustainable agriculture.