Speaker
Description
How to adapt climate change and preserve household development resilience in ecologically vulnerable area is a pressing issue. As for pastoralists in ecologically vulnerable and arid regions, drought is the most prevalent and severe climate shock. However, there is a lack of direct evidence regarding to effective measures to help households to adapt climate shocks. Thus, this study presents the impacts of payment for ecosystem services (PES) on the household development resilience in arid areas in the context of drought shocks. Based on social and climate data from 2018 to 2021 in the northern pastoral areas of China, this study measures the effects of drought shocks and subsidies on household development resilience. Findings reveal that, in the short term, neither subsidies nor drought shocks significantly affect household welfare. Nevertheless, in the long term, subsidies strengthen household development resilience and alleviate the adverse impact of drought shocks. We have proved the reliability of these conclusions through multiple robustness checks and analyzed the mechanisms of subsidies. Our research provides abundant evidence for the formulation of climate change adaptation policies.
