CLIMATE-SMART POLICIES AND DATA-DRIVEN DECISION MAKING IN AGRICULTURAL ECONOMICS AND RURAL DEVELOPMENT

Abstract

This paper analyzes how data-driven policies and climate-smart can improve agricultural economics and rural development in the face of increasing climatic variability.  The research utilized the mixed-method research design and utilized both secondary panel data (international and national sources) and primary surveys, interviews, and focus group discussions.  The relationship between policy adoption, changes in the climate, and changes in rural income was measured by use of the econometric techniques including panel regression, vector autoregression, and Granger causality.  Findings indicated that climate-smart policies significantly enhanced agricultural output and resilience of households. These advantages were even better when they had been supported using data-driven extension services.  Monte Carlo simulations and agent-based scenario modelling showed that strategic subsidy disbursement, augmented information infrastructures and digital decision support tools enhanced the adaptive capacity a great deal in reaction to predictable climatic stressors.  Qualitative research highlighted that institutional trust and views of farmers are needed to shape the adoption rate, and issues such as digital exclusions and institutional fragmentation are the obstacles to potential benefits.  This method also involved quantitative and qualitative strands and, therefore, validated the power of the findings, which underscores the significance of participatory government.  The study shows that incorporating climate-sensitive technology into information-based systems facilitates equitable growth, resilience of rural areas, and the alignment of agriculture development objectives and sustainable development over the long term.  Such findings provide policymakers, agencies involved in rural development, and international bodies with valuable information that they can apply in order to incorporate climate resilience in their agricultural economy plans.