Financial inclusion helps rural households address climate risk.
By Ashwini Chhatre, Prachi Deuskar, Javed Mohib, Deepanshi Bhardwaj
Scientific Reports | May 2023
DOI
doi.org/10.1038/s41598-023-34844-y
Citation
Chhatre, Ashwini., Deuskar, Prachi., Mohib, Javed., Bhardwaj, Deepanshi. (2023). Financial inclusion helps rural households address climate risk. Scientific Reports doi.org/10.1038/s41598-023-34844-y.
Copyright
Scientific Reports, 2023
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Abstract
Financial inclusion plays an important role in helping households manage risks, but its role in mitigating climate risks is unexplored. Access to formal financial institutions in regions with high climate risks increases households’ access to liquidity that they need to buffer against climate shocks. Using longitudinal data from 1082 rural households located in the semi-arid tropics in India, we find that households facing high climate risks hold a higher proportion of assets in liquid form. Access to formal financial services, however, reduces the need to keep liquid assets to be able to respond to high climate variability. Our results suggest that expanded financial inclusion in regions with high climate variability can reallocate resources held in unproductive liquid assets to invest in climate adaptation.

Ashwini Chhatre is an Associate Professor of Public Policy and currently serves as the Executive Director of the Bharti Institute of Public Policy (BIPP) at the Indian School of Business (ISB). Professor Chhatre is an interdisciplinary scholar whose research interests broadly centre on the dynamic cross-scale interactions between governance, economic development, and environmental protection. He relocated to India from the US in 2014 to join the faculty at the Indian School of Business, Hyderabad. He spent 13 years in the US, including five in graduate school at Duke University, where he was awarded a PhD in Political Science. In 2006-07, Professor Chhatre became the first Giorgio Ruffolo Post-doctoral Fellow in Sustainability Science at Harvard University, before joining the Department of Geography and Geographic Information Science at the University of Illinois in Urbana-Champaign.

Between completing his BA in Economics from the University of Delhi in 1990 and starting his PhD at Duke University, he spent 11 years working in different parts of India, primarily as a community organiser and social activist on issues related to natural resources such as land, forests, and water. A background in Economics, graduate training in Political Science, and a long-standing engagement with scholarship in Geography, Anthropology, Landscape Ecology, and Environmental History ensure that his research is never confined to a single discipline.

Professor Chhatre’s main research interests lie in exploring the intersection of democracy, environment, and development, with a focus on decentralised forest governance, climate change vulnerability and adaptation, and multifunctional agriculture. Over the past 20 years, the scope of his research projects has ranged from household-level to global analysis, consistently bridging research, policy, and practice.

He was the founding Editor-in-Chief of World Development Perspectives (2016-19), served as Senior Editor of Conservation Letters (2009-2014), and has published one book and several articles in leading journals including Science, and PNAS.

Ashwini Chhatre
Ashwini Chhatre