Climate change is one of the most challenging issues of the 21st century having widespread impacts on the societies and environment (IPCC, 2018). It is posing a serious risk to the global community particularly the developing nations who are continuously facing a vulnerable situation with the increase in intensity and frequency of extreme weather events (Chowdhury et al., 2020). A recent report by the IPCC, (2018) highlighted that by 2050, around 150 million people will be displaced due to climate change-induced phenomena around the world. In the last 50 years, around 79% of the global disasters involved water, weather, and climate-related hazards are accounted for 56% of mortalities with a 75% share in the economic loss (IFRC, 2020). The last decade (2010–2019) saw an increase in the frequency of weather and climate change-related disaster events by around 9% and 14% compared to the previous decades i.e. 2000–2010 and 1990–2000, respectively (IFRC, 2020).
Drought is among the many climatic extremes that possess severe impacts observed all over the world with an increasing trend of warming. The demand for precipitation is expected to increase globally owing to the increase in warming conditions (Cook et al., 2014). Unlike other hazards such as floods, earthquakes, and tsunamis, drought can occur anywhere in the world. Furthermore, drought evolves slowly ranging from few months to years of prolonged conditions of water scarcity. The direct consequences of short-term droughts may be loss of crop production, poor pasture growth, and decline in fodder supplies along with long-lasting impacts such as forest fires (Mishra and Singh, 2010). Droughts are considered the most damaging of all hazards owing to their long-lasting socio-economic impacts (Sivakumar et al., 2014). For instance, in the case of United States, drought causes an average of about US$ 6 to US$ 8 billion per year (NCDC, 2015). The recent statistics of the average annual economic impact from drought in Europe suggest an increasing trend with an estimated average annual economic loss of €6.2 billion per year (EEA, 2010). Climate-induced hazards such as floods, droughts, fires are the most damaging for the agriculture sector in Pakistan (Ullah and Shah, 2019). The agriculture sector in Pakistan in general and in Khyber Pakhtunkhwa (KP) in particular is confronting with severe floods and weather-related risks (Ahmed et al., 2019).
Droughts impact all sectors of the economy. However, the agriculture sector is the most vulnerable sector to climate change in Asia and the Pacific (ADB, 2009). Climate-induced disasters affect the availability of water to farmers in many regions of the world (Klopper et al., 2006). The risks faced by farmers due to climate change ranges from personal, financial, social, environmental, and others (Iqbal et al., 2016). Farmers’ are required to adapt their agricultural activities to maintain their production and reduce their vulnerability to climate change (Hassan and Nhemachena, 2008). The adaptation of farmers to climate change is in response to their perceived vulnerability with the intention to reduce risks associated with farming (Arbuckle et al., 2013). Climate-induced disasters and risks might bring serious negative consequences for agriculture and people associated with agriculture for their livelihood (Gerkensmeier and Ratter, 2018). Therefore, adaptation strategies in the local context are very important to be studied in developing countries like Pakistan.
Keeping in mind the importance of agriculture to the economy and rural livelihoods, the significance of climate change adaptation strategies is crucial (Ali and Erenstein, 2017). Adaptation in the agriculture sector involves practices against changes in the climatic situation. These practices may be in the form of anticipatory adaptation, autonomous adaptation, planned adaptation, even public and private adaptation, and reactionary or reactive adaptation practices (Roka, 2019). The farm-level adaptation strategies are essential for effective policymaking as a tool to manage agriculture-related risks arising from climate change (Hassan and Nhemachena, 2008). Adaptation in the agriculture sector is also important for reducing the impacts of increasing temperature and precipitation across the world (Pradeep and Mendelsohn, 2007). Thus it is equally essential that efforts should be made to increase the resilience and adaptive capacity of a system to overcome the negative impacts of climate change with limiting consequences and damages (Food, 2003). Among the many policy options, adaptation is one of the key options for reducing the harmful consequences of climate change on agriculture (Ozor et al., 2012). An important factor for informing policies aimed at promoting successful adaptation strategies in agriculture is to understand farmers’ perceptions regarding climate change, their adaptation strategies, and related factors (Jianjun et al., 2015).
There is extensive literature available on farmers’ risk preferences and their role in decisions related to agriculture production (Feder, 1980; Just and Zilberman, 1983; Adger et al., 2009). Studies on risk preferences and adaptation to climate change indicate that the socio-cognitive processes and risk preferences of those involved in decision-making play a crucial role in the promotion of adaptation decisions (Frank et al., 2011; Tam and McDaniels, 2013). Therefore, policymakers need to understand the linkage between farmers’ risk preferences and how they respond to the climate change adaptation in order to design effective adaptation strategies (Chavas et al., 2010).
The present study is designed to investigate farmers’ preferences about climate change adaptation strategies. Farmers should adopt strategies that are helpful in their struggle against climate change related losses (Coble et al., 2000; Ke and Wang, 2002). The findings of the study will deliver a better understanding and in-depth insights into the practices of farmer’s decision-making under risk. The findings of the study will guide the government agencies to help these farmers in drought situations.