with broad findings, inferences and broad outline of the strategy of fiscal policy,
alternative choice of technology, regional subsidies, farmers compensation, public
policy response in tariff structure as important factors for maintaining sustainable
livelihood in agriculture.
Keywords Climate change Á Natural capital Á Farm management practices Á
Sustainable livelihood
1 Introduction
The economy of a country relies mostly on environment, which is not reflected by its
national account. Thus, there is a distinction between ‘Natural Capital’ and
‘Manufactured Capital’. Economics gives importance to ‘Manufactured Capital’
which is produced by four factors of production. There is no substitutability between
manufactured capital and natural capital. Natural capital includes soil, water, air and
all living things on which Human beings depend on, but the converse is not true.
Poorly managed natural capital therefore becomes not only an ecological liability,
but also a social and economic liability. Working against nature by overexploiting
natural capital can be catastrophic not just in terms of biodiversity loss, but also
catastrophic to humans, as ecosystem productivity and resilience decline over time
and some regions become more prone to extreme events such as floods and droughts,
famines and epidemics, etc. Natural capital accounts contain vital information
regarding economic dependence and impact on natural world.
Land-based agriculture struggles to keep pace with the other sectors in India.
Agricultural credit remains elusive, production risks continue untrammeled, as do
market risks. In the resulting frustration and desperation, one of the most important
coping mechanisms, our rural poor have is in turn to natural resources from forests.
They do so every day, leaning on our forests for everything from food, fibre, fodder
and fuel. More systemic changes in resource allocation need to be considered, such
as targeted diversification of production systems and livelihoods to combat climate
change. Climate variability and market risk, and with other policy domains are the
related issues hover round sustainable development. Each issue has strong impact on
sustainable development. Agriculture and allied activities are also major economic,
social and cultural activity, and it provides a wide range of ecosystem services.
Importantly, agriculture in its many different forms and locations remains highly
sensitive to climate variations, the dominant source of the overall inter-annual variability of production in many regions and a continuing source of disruption to
ecosystem services. Here we use the term “adaptation” to include the actions of
adjusting practices, processes and capital in response to the actuality or threat of climate
change, as well as responses in the decision environment, such as changes in social and
institutional structures or altered technical options that can affect the potential or
capacity for these actions to be realized. There is an immense diversity of agricultural
practices because of the range of climate and other environmental variables; cultural,
262
D. Chand and R. Gartia
alternative choice of technology, regional subsidies, farmers compensation, public
policy response in tariff structure as important factors for maintaining sustainable
livelihood in agriculture.
Keywords Climate change Á Natural capital Á Farm management practices Á
Sustainable livelihood
1 Introduction
The economy of a country relies mostly on environment, which is not reflected by its
national account. Thus, there is a distinction between ‘Natural Capital’ and
‘Manufactured Capital’. Economics gives importance to ‘Manufactured Capital’
which is produced by four factors of production. There is no substitutability between
manufactured capital and natural capital. Natural capital includes soil, water, air and
all living things on which Human beings depend on, but the converse is not true.
Poorly managed natural capital therefore becomes not only an ecological liability,
but also a social and economic liability. Working against nature by overexploiting
natural capital can be catastrophic not just in terms of biodiversity loss, but also
catastrophic to humans, as ecosystem productivity and resilience decline over time
and some regions become more prone to extreme events such as floods and droughts,
famines and epidemics, etc. Natural capital accounts contain vital information
regarding economic dependence and impact on natural world.
Land-based agriculture struggles to keep pace with the other sectors in India.
Agricultural credit remains elusive, production risks continue untrammeled, as do
market risks. In the resulting frustration and desperation, one of the most important
coping mechanisms, our rural poor have is in turn to natural resources from forests.
They do so every day, leaning on our forests for everything from food, fibre, fodder
and fuel. More systemic changes in resource allocation need to be considered, such
as targeted diversification of production systems and livelihoods to combat climate
change. Climate variability and market risk, and with other policy domains are the
related issues hover round sustainable development. Each issue has strong impact on
sustainable development. Agriculture and allied activities are also major economic,
social and cultural activity, and it provides a wide range of ecosystem services.
Importantly, agriculture in its many different forms and locations remains highly
sensitive to climate variations, the dominant source of the overall inter-annual variability of production in many regions and a continuing source of disruption to
ecosystem services. Here we use the term “adaptation” to include the actions of
adjusting practices, processes and capital in response to the actuality or threat of climate
change, as well as responses in the decision environment, such as changes in social and
institutional structures or altered technical options that can affect the potential or
capacity for these actions to be realized. There is an immense diversity of agricultural
practices because of the range of climate and other environmental variables; cultural,
262
D. Chand and R. Gartia