Farm Household Livelihood Diversification Under Climate Risk in the Central Region of Cameroon: Applying Modern Portfolio Theory

Uncertainty related to climate change imposes a new economic environment on households and implies the need to seek alternate sources like livelihood diversification. It was found that to reduce their vulnerability to climate-related risks, they have to diversify their incomes by choosing a portfolio consisting of wild mango kernels and Gnetum africanum on one hand and, on the other, cassava sticks and maize. The results also unveiled that the optimal portfolio remains unchanged, regardless of the value of the risk-aversion coefficient. This study intended to equip rural farmers with the knowledge and principles of combining income-generating activities to boost their livelihoods and effectively fight against poverty. JEL Classification: G110, Q120, A540

Authors

Institutions

Publication Details

Journal
Agricultural Economics Research Review
Published
2026-04-07
DOI
https://doi.org/10.1177/09713441261427198
Primary Topic
Agricultural risk and resilience
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Farm Household Livelihood Diversification Under Climate Risk in the Central Region of Cameroon: Applying Modern Portfolio Theory

Christian‐Lambert Nguena, Martial Bindoumou, Vanelle Djeukem
Agricultural Economics Research Review
Agricultural risk and resilience
article

Farm Household Livelihood Diversification Under Climate Risk in the Central Region of Cameroon: Applying Modern Portfolio Theory

Christian‐Lambert Nguena, Martial Bindoumou, Vanelle Djeukem
article en

Abstract

Uncertainty related to climate change imposes a new economic environment on households and implies the need to seek alternate sources like livelihood diversification. It was found that to reduce their vulnerability to climate-related risks, they have to diversify their incomes by choosing a portfolio consisting of wild mango kernels and Gnetum africanum on one hand and, on the other, cassava sticks and maize. The results also unveiled that the optimal portfolio remains unchanged, regardless of the value of the risk-aversion coefficient. This study intended to equip rural farmers with the knowledge and principles of combining income-generating activities to boost their livelihoods and effectively fight against poverty. JEL Classification: G110, Q120, A540

Agricultural Economics Research Review
Université de Dschang (CM)
No poverty
Openalex Percentile: Top 6%
Agricultural risk and resilience
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.