Inequality in Adaptive Capacity and Its Impact on Agricultural Efficiency: Evidence from Farm-Level Data in India

Abstract

Despite growing evidence on climate adaptation and agricultural efficiency, limited research has integrated adaptive capacity, technical efficiency, and structural inequality within a single analytical framework in climate-vulnerable regions of India. This study addresses this gap using a cross-sectional survey of 384 farm households selected through a multi-stage stratified sampling design across four agro-ecological zones of Rajasthan. Technical efficiency was estimated using Data Envelopment Analysis (DEA), its determinants were analysed using a Tobit regression model, and inequality was assessed using the Gini coefficient. The mean technical efficiency score was 0.64, indicating substantial scope for improving resource use. The Adaptation Index significantly increased technical efficiency (β = 0.041, p < 0.001), with each additional adaptation strategy raising efficiency by 3.2 percentage points. Irrigation access and wealth also exerted significant positive effects. However, efficiency gains remained uneven, with greater inequality among rain-fed (Gini = 0.367) and small farms (0.351) than irrigated (0.248) and large farms (0.221). The findings highlight the need for policies that strengthen adaptive capacity while reducing structural inequalities in access to resources.