Abstract

Human capital accumulation through increased educational attainment plays a crucial role in the global response to climate change, yet causal evidence directly linking education to adaptation in agriculture remains scarce. In this paper, I study the causal effects of formal education on on-farm adaptation to climate change in Ethiopia. To achieve this, I employ an instrumental variable (IV) design that exploits spatio-temporal variation in exposure to the intensity of a policy-induced natural experiment—the introduction of free primary education (FPE) in 1995 in Ethiopia—as an instrument for formal education. I find that an additional year of formal education significantly increases farmers' probability of investing in irrigation, soil fertility, and improved seed technologies, as well as practicing conservation agriculture, particularly crop rotation, minimum tillage, and soil erosion management. I further show that education's role extends beyond technology adoption to enhanced risk management capabilities, with educated farmers better preventing crop damage, reducing post-harvest losses, and showing greater capacity for income diversification and self-sufficiency. Consistent with these adaptation outcomes, I find that formal education fosters greater awareness of climate change threats and stronger beliefs about the necessity of climate action, with educated individuals more likely to support environmental protection measures and recognize the shared responsibility of citizens, government, and industry in addressing climate challenges. These findings demonstrate how education builds climate resilience through multiple channels, underscoring the crucial role of human capital accumulation in climate adaptation.