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1




WHAT DOES CLIMATE CHANGE MEAN TO
FOOD CONSUMPTION OF LOW-INCOME
GROUP IN RURAL CHINA?

LI Yun,Institute of Agricultural Economics and
Development,CAAS;
YU Wen,Agricultural Information Centre, CAAS
2




Outline
• Motive
• Data
• Model and estimation
• Conclusions and implication
3




Motive
• Climate change: a global issue.
• climate warming: Many studies find evidence indicating that
 climate changing in general will benefit crop yield increase
 annually (Zhao et al., 2010;Li et al.,2010; Yang et al.,2010;
 Wang et al., 2011).
  • climate warming will make the north boundaries of food crops move
    toward northwest and southeast direction; suitable acreage of some
    crops expands;
  • the yield of rain-fed wheat in most regions of China will increase, as
    suggested by Sun et al. (2005).
• Climate change also means the increase of extreme climate
 including rainstorm, hail, frost, and drought etc.
  • Wu et al. (2008) finds that drought among various plagues was the
    chief disaster that severely affected major grain production in
    northwest China.
  • Li et al. (2008) show that the decline of rice meteorological yield was
    caused by the cold wet weather in spring and summer drought.
4




Motive
• Climate change: Household income? Food consumption?
• Quite a few studies investigate the income effect on
 household consumption.
  • Almost all studies suggest that price and income elasticity for
   individual food and food collection for China is in general relatively
   lower(Li et al., 2010; Cheng et al., 2009;Liu et al, 2009; Li et al,
   2005).
• However, less research links food consumption at
  household level with climate change.
• This paper aims to fill in gap in this field.
5




Data
• 10 western provinces are studied. They are Inner Mongolia, Guangxi,
 Sichuan, Guizhou, Yunnan, Shaanxi, Gansu, Qinghai, Ningxia, and
 Xinjiang.
  1.   Total sown area of farm crops:47.85 million hectares in 2009, 30% of the
       national total.
  2.   47.21 million hectares farm lands were hit by disasters in 2009 all over
       China, of which 31% were in these 10 western provinces.
  3.   Rural population:206.44 million in 2009, 28.9% of China’s rural population.
  4.   Lower income: Per capita net income of rural households in each of the 10
       provinces is far below nation average level in 2009. The average of per
       capita net income of rural households of the ten provinces is around 70% of
       national average.
• China Statistics Yearbook and Agriculture Statistics Yearbook;2000-
  2009.
• Including farm household income, agricultural income, cultivated area,
  disaster-covered area, disaster-afflicted area, price index of crop
  products, and growth rate of rural population.
6




Model and Estimation
         Per capita Net Income    Net Agricultural Income
  Year
                   (a)                      (b)             (b)/(a)
          Mean    Std.Dev.Coef.   Mean      Std.Dev.Coef.
  2000   1701.34      0.14         872.80       0.45        51.3%
  2001   1753.08      0.15         890.40       0.39        50.8%
  2002   1861.07      0.17         901.29       0.44        48.4%
  2003   1961.98      0.16         932.57       0.46        47.5%
  2004   2107.04      0.17         996.28       0.43        47.3%
  2005   2272.57      0.18        1084.59       0.44        47.7%
  2006   2439.85      0.18        1101.55       0.46        45.1%
  2007   2690.22      0.20        1189.80       0.48        44.2%
  2008   2900.11      0.20        1214.42       0.50        41.9%
  2009   3140.61      0.19        1284.76       0.49        40.9%
7




Model and Estimation
•
8




Climate change
• w1:About 34.5% of the cultivated farm land are actually
  covered by different kinds of disasters annually in 2000s.
• w2: About 19.7% of the cultivated farm land are actually
  afflicted by different kinds of disasters annually in 2000s.

               45
               40
               35
               30                                  w1, 31.2
         (%)




               25
               20
               15                                  w2, 14.2
               10
                5
                0
9


the impact of climate change on
agricultural income
•
10



Climate change & Agri. income
                          Equation (2)-1                                Equation (2)-2
              w1        pindex      rpop          T         w2        pindex      rpop          T
Inner
           0.0347      -0.00137    7.416***   0.247***   0.0514      -0.00142    7.421***   0.247***
Mogolia
           (0.27)      (-0.88)     (39.91)    (20.63)    (0.39)      (-0.88)     (40.22)    (23.53)
Guangxi    -4.016***   -0.0151*** 9.431***    0.254***   -7.102***   0.0151***   5.570***   0.320***
           (-7.24)     (-5.21)     (17.32)    (11.99)    (-5.52)     (5.06)      (24.45)    (26.29)
Sichuan    1.019 *     -0.00375    7.317***   0.0132     1.353 *     -0.00376    7.433***   -0.00404
           (2.26)      (-1.05)     (11.69)    (0.23)     (2.05)      (-0.81)     (10.16)    (-0.06)
Guizhou    -0.663***   0.0141***   4.732***   0.205***   -0.723***   0.0135***   4.749***   0.200***
           (-3.98)     (20.23)     (68.83)    (29.56)    (-3.46)     (22.02)     (66.20)    (30.32)
Yunnan     0.175 *     0.00223     6.308***   0.147***   0.350 *     0.00144     6.423***   0.138***
           (2.02)      (0.95)      (19.92)    (5.85)     (2.17)      (0.56)      (18.20)    (4.80)
                       0.00514**                                     0.00512**
Shaanxi    -0.141                  5.572***   0.225***   -0.292***               5.599***   0.218***
                       *                                             *
           (-0.71)     (6.33)      (27.79)    (9.66)     (-4.51)     (6.52)      (36.15)    (10.53)
                                                                     -
Gansu      -0.226      -0.00455    7.138***   0.163***   -0.640***   0.00385**   7.113***   0.174***
                                                                     *
           (-1.37)     (-1.45)     (20.10)    (7.71)     (-11.81)    (-6.70)     (94.89)    (41.34)
Qinghai    -0.405***   0.0022      5.906***   0.122***   -0.407***   -0.000221 6.175***     0.0985***
           (-5.16)     (1.71)      (30.88)    (5.87)     (-10.30)    (-0.18)     (30.70)    (4.77)
Ningxia    -0.519      0.00648     5.689***   0.379**    0.921       -0.00283    6.692***   0.257***
           (-0.60)     (0.72)      (5.18)     (3.23)     (1.02)      (-0.49)     (9.06)     (3.39)
                       0.00357**
Xinjiang   -0.449***               6.784***   0.106***   -0.529      0.00315     6.797***   0.111***
                       *
           (-3.39)     (3.46)      (50.35)    (8.58)     (-1.75)     (1.87)      (34.47)    (6.96)
11




Results summary of equ.2
• The results show that disasters induced by adverse
  climate do invade net agricultural income.
• The increase of price index of agricultural products has a
  statistically significant impact on per capita net agri.
  income in Guangxi, Guizhou, Shaanx, Gansu, and
  Xinjiang.
• the increase of rural population facilitate the increase of
  agriculture income.
• Time trend factors including technology and infrastructure
  progress contribute to the increase of agricultural income.
  • trend factors contribute to the increase of net agri. income by
   1.1~1.46% annually.
12




  Food Consumption (per capita kg/year)
year    rice    wheat vegt     oil         meat    pork    beef    lamb    poultry   egg fish



 2003    80.0 102.8     88.6         5.5    18.9    14.9     1.3     2.8        2.2 2.2     1.0
 2004    78.6 103.0     88.0         4.0    18.3    14.7     0.9     2.7        2.2 2.0     1.0
 2005    79.4 105.1     86.0         5.1    20.3    16.6     1.1     2.6        2.6 2.1     1.1
 2006    77.5    98.4   83.7         5.1    20.7    16.6     1.4     2.3        2.6 2.3     1.2
 2007    75.9    95.5   81.1         5.0    18.7    14.8     1.3     2.7        2.9 2.2     1.3
 2008    77.2    93.7   80.3         5.1    17.3    14.0     1.1     2.3        3.4 2.6     1.3
 2009    77.2    88.1   86.0         5.3    20.9    15.1     1.1     2.5        3.4 2.5     1.3


Total    78.0    98.1   84.8         5.0    19.3    15.2     1.2     2.6        2.8 2.3     1.2
13




Food consumption & Climate change
•
14

  the determinant of food consumption of western
  rural residents: a GMM estimation
variable     rice     wheat        veg         oil       pork       beef       lamb      poultry       egg        fish
 Ps/pr     3.319***   4.078***               -0.00423   6.819***   0.157       3.271      0.419       -0.816*    1.665
            (3.96)     (4.74)                 (-0.01)    (6.36)    (0.07)      (1.14)     (0.50)      (-2.15)    (1.71)
  w1       -2.469*     2.124     -1.051**    -0.728     3.214***   0.996      3.153*     -1.409*       0.59      -0.445
            (-2.22)    (1.76)     (-2.95)     (-1.81)    (3.98)    (0.89)      (2.11)     (-2.02)     (0.79)     (-0.57)
                                                                                                                 0.0472
pindex     0.0214     0.0326     0.0283***   -0.00613   0.0428*    -0.0505    -0.0992*   0.0337*     0.0487***
                                                                                                                     *
            (0.97)     (0.87)      (4.62)    (-0.59)      (2.15)    (-1.61)   (-2.25)      (2.30)      (3.77)     (2.24)
 rpop       -0.281    -6.692      1.683*     3.228*     -9.814**    12.23*    12.56*     -9.029***    -1.716      -4.91
           (-0.11)    (-1.31)      (1.97)     (2.27)     (-3.29)     (2.33)    (2.14)     (-3.65)     (-0.81)    (-1.34)
 trend       0.381     0.531     0.325***    0.0399       0.119    -0.0697     -0.78      0.0798     0.466***     0.325
            (1.66)     (1.31)      (5.32)     (0.34)      (0.63)    (-0.22)   (-1.84)      (0.46)      (3.78)     (1.54)
  lnpr     -2.511*     -0.86     -1.215***   -0.368       0.848    -2.569*    -0.938      2.271**    -1.648**    -1.694
            (-2.49)   (-0.36)     (-4.06)     (-0.82)    (1.10)    (-2.22)    (-0.62)     (2.86)      (-2.81)    (-1.28)
 Ps/pr     2.902***   4.160***               -0.0161    6.828***   0.0879      3.364       0.28       -0.781*    1.623
            (3.37)     (4.53)                 (-0.03)    (6.34)    (0.04)      (1.26)     (0.34)      (-2.10)    (1.65)
  w2       -4.479**    2.758     -1.562**     -0.81     4.099***   2.303      5.501**     -1.313      0.578      -0.698
            (-2.91)    (1.61)     (-2.62)     (-1.65)    (3.79)    (1.54)      (2.78)     (-1.28)     (0.48)     (-0.65)
                                                                                                                 0.0466
pindex     0.0229     0.0367     0.0267***   -0.00743   0.0474*    -0.0504    -0.0929*    0.0311     0.0501***
                                                                                                                     *
             (1.07)    (1.00)      (4.50)    (-0.68)      (2.22)    (-1.67)   (-2.19)      (1.96)      (4.09)     (2.24)
 rpop       -0.116    -7.205      1.772*     3.513*     -10.90**    11.62*      11.1     -8.705***    -1.868      -4.67
            (-0.05)   (-1.44)      (2.13)     (2.30)     (-3.12)     (2.25)    (1.90)     (-3.37)     (-0.92)    (-1.27)
 trend       0.418     0.525     0.309***    0.0378       0.114    -0.0945    -0.781      0.0705     0.476***     0.327
             (1.83)    (1.27)      (5.05)    (0.31)       (0.58)    (-0.31)   (-1.95)      (0.39)      (3.72)     (1.57)
  lnpr     -2.567**   -0.437     -1.115***   -0.458       1.174    -2.357*    -0.716      2.246**    -1.654**    -1.753
            (-2.67)   (-0.18)     (-3.43)    (-0.94)      (1.40)    (-2.08)   (-0.48)      (2.64)     (-2.65)    (-1.34)
15




Results
1. the impact of climate change on food consumption
 • Climate change has statistically significant and negative impact on rice
   and vegetable consumption of rural residents. However, climate
   change has significant and positive impact on pork and lamb
   consumption.
2. the impact of substitute products on food
   consumption
   • results show that rice and wheat, as staple food in western
     China, act evidently good substitute to each other. Eggs are
     strong substitute for pork. There is no evidence to show that pork
     acts a substitute for edible oil and the result is statistically
     insignificant.
3. The result suggests that the increase of producer
   price of agricultural products actually increase rural
   residents’ consumption of vegetables, pork, eggs,
   and aquatic products, and do not affect staple food
   consumption including rice and wheat.
16




Results
4. the impact of population growth and time trend on
     food consumption
• the consumption of vegetables, edible oil, beef and lamb
  increases as rural population grows, but the consumption
  of pork and poultry meat declines.
• rural residents’ consumption preference to vegetables and
  eggs goes up over time.
5. price elasticity and food consumption
• Results indicate that the consumption of rice, vegetables,
  beef, and eggs is price elastic. Increase of price of these
  items will significantly reduce their consumption.
17




Conclusions and Implication
1.   The impact of climate change on agricultural income varies
     among different regions. Six out of ten provinces are
     affected adversely and significantly. This might suggest
     adaptation capability in these provinces particularly need
     to be strengthened to tackle with adverse climate change.
2.   The impact of climate change on food consumption differs
     in accord with food varieties. Adverse climate change has
     negative impact on the consumption of rice, vegetables
     and poultry. However, climate change helps to increase
     meat consumption including pork and lamb.
3.   Rural population growth is an important factor affecting
     household income. Per capita agricultural income increases
     with the increase of rural population growth. One possible
     explanation is that agricultural labor is deficient in many rural
     regions as most prime rural labors migrate to the urban.
18




Conclusions and Implication
4. Rural residents’ consumption of vegetables and eggs
   increases over time, which indicates an improvement in
   food nutrition balance. However, rural residents’
   consumption of certain food items including vegetables,
   beef, and eggs are quite elastic to price change.
5. Time trend variable including technological progress
   factors plays a positive role in agricultural income
   growth. However, the coefficient is relatively low.
19




Welcome Comments,
     Thanks!

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Li Yun — What does climate change mean to food consumption of low income group in rural china

  • 1. 1 WHAT DOES CLIMATE CHANGE MEAN TO FOOD CONSUMPTION OF LOW-INCOME GROUP IN RURAL CHINA? LI Yun,Institute of Agricultural Economics and Development,CAAS; YU Wen,Agricultural Information Centre, CAAS
  • 2. 2 Outline • Motive • Data • Model and estimation • Conclusions and implication
  • 3. 3 Motive • Climate change: a global issue. • climate warming: Many studies find evidence indicating that climate changing in general will benefit crop yield increase annually (Zhao et al., 2010;Li et al.,2010; Yang et al.,2010; Wang et al., 2011). • climate warming will make the north boundaries of food crops move toward northwest and southeast direction; suitable acreage of some crops expands; • the yield of rain-fed wheat in most regions of China will increase, as suggested by Sun et al. (2005). • Climate change also means the increase of extreme climate including rainstorm, hail, frost, and drought etc. • Wu et al. (2008) finds that drought among various plagues was the chief disaster that severely affected major grain production in northwest China. • Li et al. (2008) show that the decline of rice meteorological yield was caused by the cold wet weather in spring and summer drought.
  • 4. 4 Motive • Climate change: Household income? Food consumption? • Quite a few studies investigate the income effect on household consumption. • Almost all studies suggest that price and income elasticity for individual food and food collection for China is in general relatively lower(Li et al., 2010; Cheng et al., 2009;Liu et al, 2009; Li et al, 2005). • However, less research links food consumption at household level with climate change. • This paper aims to fill in gap in this field.
  • 5. 5 Data • 10 western provinces are studied. They are Inner Mongolia, Guangxi, Sichuan, Guizhou, Yunnan, Shaanxi, Gansu, Qinghai, Ningxia, and Xinjiang. 1. Total sown area of farm crops:47.85 million hectares in 2009, 30% of the national total. 2. 47.21 million hectares farm lands were hit by disasters in 2009 all over China, of which 31% were in these 10 western provinces. 3. Rural population:206.44 million in 2009, 28.9% of China’s rural population. 4. Lower income: Per capita net income of rural households in each of the 10 provinces is far below nation average level in 2009. The average of per capita net income of rural households of the ten provinces is around 70% of national average. • China Statistics Yearbook and Agriculture Statistics Yearbook;2000- 2009. • Including farm household income, agricultural income, cultivated area, disaster-covered area, disaster-afflicted area, price index of crop products, and growth rate of rural population.
  • 6. 6 Model and Estimation Per capita Net Income Net Agricultural Income Year (a) (b) (b)/(a) Mean Std.Dev.Coef. Mean Std.Dev.Coef. 2000 1701.34 0.14 872.80 0.45 51.3% 2001 1753.08 0.15 890.40 0.39 50.8% 2002 1861.07 0.17 901.29 0.44 48.4% 2003 1961.98 0.16 932.57 0.46 47.5% 2004 2107.04 0.17 996.28 0.43 47.3% 2005 2272.57 0.18 1084.59 0.44 47.7% 2006 2439.85 0.18 1101.55 0.46 45.1% 2007 2690.22 0.20 1189.80 0.48 44.2% 2008 2900.11 0.20 1214.42 0.50 41.9% 2009 3140.61 0.19 1284.76 0.49 40.9%
  • 8. 8 Climate change • w1:About 34.5% of the cultivated farm land are actually covered by different kinds of disasters annually in 2000s. • w2: About 19.7% of the cultivated farm land are actually afflicted by different kinds of disasters annually in 2000s. 45 40 35 30 w1, 31.2 (%) 25 20 15 w2, 14.2 10 5 0
  • 9. 9 the impact of climate change on agricultural income •
  • 10. 10 Climate change & Agri. income Equation (2)-1 Equation (2)-2 w1 pindex rpop T w2 pindex rpop T Inner 0.0347 -0.00137 7.416*** 0.247*** 0.0514 -0.00142 7.421*** 0.247*** Mogolia (0.27) (-0.88) (39.91) (20.63) (0.39) (-0.88) (40.22) (23.53) Guangxi -4.016*** -0.0151*** 9.431*** 0.254*** -7.102*** 0.0151*** 5.570*** 0.320*** (-7.24) (-5.21) (17.32) (11.99) (-5.52) (5.06) (24.45) (26.29) Sichuan 1.019 * -0.00375 7.317*** 0.0132 1.353 * -0.00376 7.433*** -0.00404 (2.26) (-1.05) (11.69) (0.23) (2.05) (-0.81) (10.16) (-0.06) Guizhou -0.663*** 0.0141*** 4.732*** 0.205*** -0.723*** 0.0135*** 4.749*** 0.200*** (-3.98) (20.23) (68.83) (29.56) (-3.46) (22.02) (66.20) (30.32) Yunnan 0.175 * 0.00223 6.308*** 0.147*** 0.350 * 0.00144 6.423*** 0.138*** (2.02) (0.95) (19.92) (5.85) (2.17) (0.56) (18.20) (4.80) 0.00514** 0.00512** Shaanxi -0.141 5.572*** 0.225*** -0.292*** 5.599*** 0.218*** * * (-0.71) (6.33) (27.79) (9.66) (-4.51) (6.52) (36.15) (10.53) - Gansu -0.226 -0.00455 7.138*** 0.163*** -0.640*** 0.00385** 7.113*** 0.174*** * (-1.37) (-1.45) (20.10) (7.71) (-11.81) (-6.70) (94.89) (41.34) Qinghai -0.405*** 0.0022 5.906*** 0.122*** -0.407*** -0.000221 6.175*** 0.0985*** (-5.16) (1.71) (30.88) (5.87) (-10.30) (-0.18) (30.70) (4.77) Ningxia -0.519 0.00648 5.689*** 0.379** 0.921 -0.00283 6.692*** 0.257*** (-0.60) (0.72) (5.18) (3.23) (1.02) (-0.49) (9.06) (3.39) 0.00357** Xinjiang -0.449*** 6.784*** 0.106*** -0.529 0.00315 6.797*** 0.111*** * (-3.39) (3.46) (50.35) (8.58) (-1.75) (1.87) (34.47) (6.96)
  • 11. 11 Results summary of equ.2 • The results show that disasters induced by adverse climate do invade net agricultural income. • The increase of price index of agricultural products has a statistically significant impact on per capita net agri. income in Guangxi, Guizhou, Shaanx, Gansu, and Xinjiang. • the increase of rural population facilitate the increase of agriculture income. • Time trend factors including technology and infrastructure progress contribute to the increase of agricultural income. • trend factors contribute to the increase of net agri. income by 1.1~1.46% annually.
  • 12. 12 Food Consumption (per capita kg/year) year rice wheat vegt oil meat pork beef lamb poultry egg fish 2003 80.0 102.8 88.6 5.5 18.9 14.9 1.3 2.8 2.2 2.2 1.0 2004 78.6 103.0 88.0 4.0 18.3 14.7 0.9 2.7 2.2 2.0 1.0 2005 79.4 105.1 86.0 5.1 20.3 16.6 1.1 2.6 2.6 2.1 1.1 2006 77.5 98.4 83.7 5.1 20.7 16.6 1.4 2.3 2.6 2.3 1.2 2007 75.9 95.5 81.1 5.0 18.7 14.8 1.3 2.7 2.9 2.2 1.3 2008 77.2 93.7 80.3 5.1 17.3 14.0 1.1 2.3 3.4 2.6 1.3 2009 77.2 88.1 86.0 5.3 20.9 15.1 1.1 2.5 3.4 2.5 1.3 Total 78.0 98.1 84.8 5.0 19.3 15.2 1.2 2.6 2.8 2.3 1.2
  • 13. 13 Food consumption & Climate change •
  • 14. 14 the determinant of food consumption of western rural residents: a GMM estimation variable rice wheat veg oil pork beef lamb poultry egg fish Ps/pr 3.319*** 4.078*** -0.00423 6.819*** 0.157 3.271 0.419 -0.816* 1.665 (3.96) (4.74) (-0.01) (6.36) (0.07) (1.14) (0.50) (-2.15) (1.71) w1 -2.469* 2.124 -1.051** -0.728 3.214*** 0.996 3.153* -1.409* 0.59 -0.445 (-2.22) (1.76) (-2.95) (-1.81) (3.98) (0.89) (2.11) (-2.02) (0.79) (-0.57) 0.0472 pindex 0.0214 0.0326 0.0283*** -0.00613 0.0428* -0.0505 -0.0992* 0.0337* 0.0487*** * (0.97) (0.87) (4.62) (-0.59) (2.15) (-1.61) (-2.25) (2.30) (3.77) (2.24) rpop -0.281 -6.692 1.683* 3.228* -9.814** 12.23* 12.56* -9.029*** -1.716 -4.91 (-0.11) (-1.31) (1.97) (2.27) (-3.29) (2.33) (2.14) (-3.65) (-0.81) (-1.34) trend 0.381 0.531 0.325*** 0.0399 0.119 -0.0697 -0.78 0.0798 0.466*** 0.325 (1.66) (1.31) (5.32) (0.34) (0.63) (-0.22) (-1.84) (0.46) (3.78) (1.54) lnpr -2.511* -0.86 -1.215*** -0.368 0.848 -2.569* -0.938 2.271** -1.648** -1.694 (-2.49) (-0.36) (-4.06) (-0.82) (1.10) (-2.22) (-0.62) (2.86) (-2.81) (-1.28) Ps/pr 2.902*** 4.160*** -0.0161 6.828*** 0.0879 3.364 0.28 -0.781* 1.623 (3.37) (4.53) (-0.03) (6.34) (0.04) (1.26) (0.34) (-2.10) (1.65) w2 -4.479** 2.758 -1.562** -0.81 4.099*** 2.303 5.501** -1.313 0.578 -0.698 (-2.91) (1.61) (-2.62) (-1.65) (3.79) (1.54) (2.78) (-1.28) (0.48) (-0.65) 0.0466 pindex 0.0229 0.0367 0.0267*** -0.00743 0.0474* -0.0504 -0.0929* 0.0311 0.0501*** * (1.07) (1.00) (4.50) (-0.68) (2.22) (-1.67) (-2.19) (1.96) (4.09) (2.24) rpop -0.116 -7.205 1.772* 3.513* -10.90** 11.62* 11.1 -8.705*** -1.868 -4.67 (-0.05) (-1.44) (2.13) (2.30) (-3.12) (2.25) (1.90) (-3.37) (-0.92) (-1.27) trend 0.418 0.525 0.309*** 0.0378 0.114 -0.0945 -0.781 0.0705 0.476*** 0.327 (1.83) (1.27) (5.05) (0.31) (0.58) (-0.31) (-1.95) (0.39) (3.72) (1.57) lnpr -2.567** -0.437 -1.115*** -0.458 1.174 -2.357* -0.716 2.246** -1.654** -1.753 (-2.67) (-0.18) (-3.43) (-0.94) (1.40) (-2.08) (-0.48) (2.64) (-2.65) (-1.34)
  • 15. 15 Results 1. the impact of climate change on food consumption • Climate change has statistically significant and negative impact on rice and vegetable consumption of rural residents. However, climate change has significant and positive impact on pork and lamb consumption. 2. the impact of substitute products on food consumption • results show that rice and wheat, as staple food in western China, act evidently good substitute to each other. Eggs are strong substitute for pork. There is no evidence to show that pork acts a substitute for edible oil and the result is statistically insignificant. 3. The result suggests that the increase of producer price of agricultural products actually increase rural residents’ consumption of vegetables, pork, eggs, and aquatic products, and do not affect staple food consumption including rice and wheat.
  • 16. 16 Results 4. the impact of population growth and time trend on food consumption • the consumption of vegetables, edible oil, beef and lamb increases as rural population grows, but the consumption of pork and poultry meat declines. • rural residents’ consumption preference to vegetables and eggs goes up over time. 5. price elasticity and food consumption • Results indicate that the consumption of rice, vegetables, beef, and eggs is price elastic. Increase of price of these items will significantly reduce their consumption.
  • 17. 17 Conclusions and Implication 1. The impact of climate change on agricultural income varies among different regions. Six out of ten provinces are affected adversely and significantly. This might suggest adaptation capability in these provinces particularly need to be strengthened to tackle with adverse climate change. 2. The impact of climate change on food consumption differs in accord with food varieties. Adverse climate change has negative impact on the consumption of rice, vegetables and poultry. However, climate change helps to increase meat consumption including pork and lamb. 3. Rural population growth is an important factor affecting household income. Per capita agricultural income increases with the increase of rural population growth. One possible explanation is that agricultural labor is deficient in many rural regions as most prime rural labors migrate to the urban.
  • 18. 18 Conclusions and Implication 4. Rural residents’ consumption of vegetables and eggs increases over time, which indicates an improvement in food nutrition balance. However, rural residents’ consumption of certain food items including vegetables, beef, and eggs are quite elastic to price change. 5. Time trend variable including technological progress factors plays a positive role in agricultural income growth. However, the coefficient is relatively low.