Exploring transformational adaptation strategy through agricultural policy reform in the Philippines

The Philippines is much more prone to climate change effects than many other countries. The potential impact on the agriculture sector is of particular concern, given its vital role in the economy and for vulnerable households. This study proposes a new approach for adaptation strategies by exploring policy reform in agriculture as a transformative way to help economic agents adapt to climate change. We specifically explore the current rice reform policy currently pursued by the government through the abolishment of rice quota program. We found this reform could help transform the agricultural and economic system by allowing scarce resources move from low to high productivity sector thus increase country’s adaptive capacity. However, the process entails a welfare loss to certain agents, but adding government intervention could act as the second-best policy and become a transition pathway before the whole system transform to reach the optimal efficiency point when the intervention program is eventually phased out.