Pragmatic economic valuation of adaptation risk and responses across scales in Nicaragua

Nicaragua is particularly vulnerable to climate change due to its geographic, social, economic and environmental conditions. Increased temperature, fluctuation of precipitation patterns, and sea-level rise pose significant impacts for agricultural productivity, water resources availability and the risk of extreme disaster. Consequently, some crops may lose their suitability in current growing areas. This study provides a vulnerability assessment based on the results for exposure, sensitivity and adaptive capacity, and includes present and projected future climatic conditions and hazards, crop suitability analyses and socio-economic assessments at a district scale. In addition, a case study is presented in three municipalities: Waslala, Rancho Grande and El Cuá, focusing on coffee and cocoa systems, which are essential to the Nicaraguan rural economy, where there has been a significant reduction in climate suitability. The case study shows opportunities, economic trade-offs and barriers of the adoption of climate-smart agriculture (CSA) practices for adaptation to progressive climate change.