Is crop diversification a panacea for climate resilience in Africa? Welfare implications for heterogeneous households
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Crop diversification is often promoted as a strategy to achieve climate resilience. However, the benefits to crop diversification may vary depending on household resource endowments. For farm households with few resources, as shown by studies of Burkina Faso, Malawi and Zambia, crop diversification is likely to be an important strategy for managing production and price risk. However, for larger, better capitalized farms, diversification may not be welfare enhancing, because returns to specializa tion may be higher for these households.