Bio-Economic Assessment of Climate-Smart Tea Production in the Northern Mountainous Region of Vietnam

Asian Journal of Agriculture and Development, Vol. 15 No. 2, 2018

20 Pages Posted: 31 Dec 2018

See all articles by Tran The Tuong

Tran The Tuong

Government of the Socialist Republic of Vietnam - Ministry of Agriculture and Rural Development, Vietnam

Aslihan Arslan

FAO of the UN (ESA); UC Davis - Agricultural and Resource Economics; Kiel Institute for the World Economy

Giacomo Branca

UniversitĂ  degli studi della Tuscia

Mai Van Trinh

Institute for Agricultural Environment

Date Written: 2018

Abstract

Agricultural production in the face of climate change requires a climate-smart transformation and reorientation at multiple scales. Vietnam is one of the developing countries that is agriculture-based and severely affected by climate change; therefore it is crucial that the agricultural system advances toward this transformation. While climate-smart agriculture has gained a significant attention in global fora, context-specific evidence is still scarce in Vietnam. This study examines climate-smart agriculture potentials in tea production systems in the northern mountainous region of Vietnam. Since the climate-smart agriculture concept is multidimensional, which includes food security and adaptation and mitigation, an interdisciplinary analytical framework is employed in this research to assess the economic and biophysical dimensions. Enterprise budgets and representative farms (i.e., farms or households having one or more activities or enterprises) are developed for tea and alternative crops, as well as livestock production, to analyze the productivity dimension of food security. In evaluating the adaptation potential of tea production, local farmers’ perceptions and experiences of extreme weather events are combined with ERA-Interim data (1989-2013) and household survey data on income levels (reanalysis dataset taken from the European Centre for Medium-Range Weather Forecasts; ERA stands for ECMWF Reanalysis). Greenhouse gas emissions and carbon sequestration potentials are estimated through partial Carbon Footprint Life Cycle Assessment. Results show that tea production systems generate net margins, returns to capital, and family labor higher than the alternatives. Farmers, therefore, have high incentives to switch from other crops to tea production. In the face of climate change, tea has shown a strong biophysical adaptive capacity compared to other crops in the northern mountainous region. Tea production systems have a high capability for carbon storage. Evidence of strong synergies between food security and mitigation and adaptation is demonstrated for tea production systems in the northern mountainous region, and potential tradeoffs were highlighted, where relevant.

Keywords: climate-smart agriculture, tea production, mitigation, adaptation

JEL Classification: Q01, Q12, Q18, Q54

Suggested Citation

Tuong, Tran The and Arslan, Aslihan and Branca, Giacomo and Trinh, Mai Van, Bio-Economic Assessment of Climate-Smart Tea Production in the Northern Mountainous Region of Vietnam (2018). Asian Journal of Agriculture and Development, Vol. 15 No. 2, 2018, Available at SSRN: https://ssrn.com/abstract=3300008

Tran The Tuong (Contact Author)

Government of the Socialist Republic of Vietnam - Ministry of Agriculture and Rural Development, Vietnam ( email )

Vietnam

Aslihan Arslan

FAO of the UN (ESA) ( email )

Viale delle Terme di Caracalla
Rome, Lazio 00100
ITALY

UC Davis - Agricultural and Resource Economics ( email )

One Shields Avenue
SS&H Building
Davis, CA 95616
United States

Kiel Institute for the World Economy ( email )

Duesternbrooker Weg 120
Kiel, Schleswig-Hosltein 24105
Germany

Giacomo Branca

UniversitĂ  degli studi della Tuscia ( email )

Rettorato, Via S.M.in Gradi n.4
Viterbo, 01100
Italy

Mai Van Trinh

Institute for Agricultural Environment ( email )

Hanoi
Vietnam

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