Program > Papers by author > Phelinas Pascale

Volcanic Hazards, Land and Labour
Johanna Choumert  1, *@  , Pascale Phelinas  2, 3, *@  
1 : Economic Development Initiatives  (EDI)
Limited, 38 Crendon Street, High Wycombe, Buckinghamshire HP13 6LA, United Kingdom -  Royaume-Uni
2 : Institut de Recherche pour le Développement  (IRD)
Institut de recherche pour le développement [IRD] : UMR245
3 : Centre d\'Études et de Recherches sur le Développement International - Clermont Auvergne  (CERDI)  -  Website
Université Clermont Auvergne : UMR6587, Centre National de la Recherche Scientifique : UMR6587
65 Bvd Francois Mitterrand - BP 320 / 63009 Clermont-Ferrand Cedex 1 -  France
* : Corresponding author

We study the behavior of farmers living under the threat of the Tungurahua Volcano in Ecuador. Recent eruptions have caused significant losses, including loss of crops, death of livestock, and dwelling destruction. We collected a unique data set after a major eruption in 2016. We interviewed 222 farmers in the risky zone and 260 in a nearby control zone to understand why farmers choose to remain in the risky zone despite the existence of public programs aimed at relocating them in safe zones. We examine land and labor, which are farmers' main productive assets. Firstly, we investigate the capitalization of volcanic hazards in farmland values and find a negative price premium of 21% compared to the control zone. Secondly, we explore nonfarm labor in response to volcanic risk. Finally, we argue that repeated ashfall events increase the illiquidity of farm households' assets such as farmland and that agricultural human capital is difficult to convert into non-agricultural one. Our results convey important information for public policies aimed at supporting adaptation and resilience of people living under the threat of volcanoes.

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