Application of Econometrics Methods to Analyze the Impact of Climate Change on the Agricultural Sector in Developing Countries

Abstract

This study aims to analyze the impact of climate change on the Indonesian
agricultural sector using econometric methods. Given the importance of the
agricultural sector to the Indonesian economy, climate change, which affects
rainfall and temperature patterns, has a significant impact on agricultural
yields. The study was conducted in two provinces, West Java and South
Sulawesi, each of which has different agricultural characteristics. The data
used in this study included the results of in-depth interviews with farmers and
policymakers, questionnaires distributed to farmers, and direct observations
of agricultural practices in the field. The results show that most farmers feel
the effects of climate change, especially in the uncertainty of seasons and
declining crop yields. Although the government has implemented several
adaptation policies, gaps still exist in their implementation. Farmers believe
that existing policies are insufficient to help them cope with climate change.
Therefore, this study recommends increasing farmers' access to climate
adaptation technologies and more inclusive policies by involving farmers in
the policy planning process that is more responsive to their needs.