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actor must have a sophisticated knowledge of how the markets
work and must have a large enough interestor an association
with others who together have a large enough interestto make
the minimum transactions the market allows.
Findings
This chapter shows that both the effects of climatic events on
human populations and activities and the potential usefulness of
climate forecast information are shaped by sets of coping
strategies that have been developed over long periods of time and
that are in constant development and change. Specifically:
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1.
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People have developed a wide variety of strategies for coping
with climate variability. Some coping strategies are quite
specific to a type of human activity and to the geographic and
cultural context of the affected people. Thus, to anticipate the
potential impacts of a climatic event on a particular agricultural
population, for example, requires understanding of the coping
mechanisms available to that population. Drought of a particular
severity may not have the same effect on agricultural populations
in different countries.
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Although there is no well established typology of coping
strategies, the distinction between ex ante and ex post types of
coping provides a good starting point. Climate forecasts have the
potential to improve outcomes for people engaged in
weather-sensitive activities both by allowing them to take more
effective ex ante actions and by reducing the need for ex post
strategies.
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It is analytically useful to distinguish major types of ex ante
and ex post coping strategies. One type of ex ante strategy
consists of technological interventions that reduce danger and
increase opportunities associated with climate-related events. A
good example is the management of seasonal and interannual
variations in streamflow and water supply by systems of dams,
reservoirs, and crop irrigation. Having these systems in place
prevents flooding in times of high water flow and allows for crop
production, fresh water supply, hydroelectric power, and aquatic
recreation in dry periods. Construction of firebreaks and use of
low-till and no-till farm equipment similarly increase resilience
to climate variations.
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Another type of ex ante strategy consists of hedging against
climate risktaking multiple actions so that one action
provides benefits to partially cover losses that arise if other
actions yield poor results. Farmers do this by separating their
herds, diversifying crop varieties and species, diversifying
income, and buying and selling futures contracts. Electric
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