Paper short abstract:

Credit institutions as collective institutions could serve to promote technological adoption. This paper investigates how cooperative societies, micro credit institutions and informal saving groups aid in rural farm households' adoption of climate change adaptation strategies.

Paper long abstract:

The 2030 Agenda for Sustainable Development aim to achieve developmental posterity in responding to climate change and sustaining natural resources, food and agriculture remain crucial aspects of the SDG goals. Given these discouraging prospects of climate change, it is no surprise that the adaptation strategies are vital to improve the welfare of rural farm households. These strategies can indeed buffer against climate change and play crucial roles in reducing the food insecurity and poverty status of these households. Climate change adaptation strategies (CCA) are often regarded as technological innovation needed essentially by rural farm household who are worse hit by climate change to combat its negative effects. There exist over time debates on the directional relationships between credit and technological adoption among the academia therefore this paper sought to understand the roles of credit institutions in promoting its members accessibility and utilization of climate change adaptation strategies. The study utilizes the World Bank Living Standard Measurement Survey panel data on farming households from 2010-2016 which were obtained from all the thirty six states of the country including the Federal Capital Territory (FCT). Assessing the effect of micro credit, co-operative and informal savings institutions on the probability of adopting irrigation facilities, crop diversification, alley cropping and diversification in nonfarm activities provides evidence into the importance of collective institutions on rural farm households technological adoption potentials.

As evidenced by the research findings the work of a range of authors, this paper will argue that credit institutions have mixed impacts on technological adoption