Loss-domain preferences and protective climate adaptation: evidence from grape farmers under increasing precipitation

Understanding how farmers make adaptation decisions under increasing rainfall-related risks is critical for effective climate risk management, yet evidence remains limited on the role of behavioural factors in shaping these decisions. Using data from a field experiment and a survey conducted in major grape-producing regions in China, this study investigates how risk preferences across different domains affect farmers’ willingness to adopt adaptation measures in response to anticipated increases in rainfall and rainy days. We find that farmers differ in both risk attitudes and outcome sensitivity across the gain and loss domains, but only preferences in the loss domain significantly affect adaptation intentions and increase the likelihood of adopting rain covers as a protective measure. The effect is heterogeneous across age, farm size and exposure to social learning. These findings suggest that climate adaptation measures may be more effectively promoted when framed as tools for reducing potential losses rather than enhancing expected returns. They also highlight the role of demonstration and peer-based learning in easing concerns over potential losses and improving the uptake of adaptation practices among smallholders.