Natural Risk Shocks and Rural Household Livelihood Resilience: Does Digital Transformation Make a Difference?

The natural disasters caused by climate change are increasingly threatening the livelihood sustainability of rural households. How to enhance the adaptability of farmers has become a major issue that urgently needs to be addressed in rural development. An increasing amount of research suggests that the digital transformation in rural areas may provide solutions to this problem. This study selected large sample data from the China Family Panel Studies (CFPS) from 2014 to 2020 to empirically test the role of digital economy in mitigating the adverse impact of natural disasters on livelihood resilience of rural households in China. The empirical results indicate that although natural disasters have a significant negative impact on the livelihood resilience of rural households, the embedding of digital technology can alleviate this negative impact to some extent by expanding non-agricultural employment opportunities for rural households, enhancing households’ access to credit, and improving agricultural production strategies. During this process, the buffering capacity, self-organization ability, and learning ability of rural families have been significantly improved. Moreover, the mitigating effect of the digital economy exhibits heterogeneity. It is more pronounced in the central and western regions than in the eastern regions, and also more evident among high-income families relative to low-income families. The key to improving the benefits of digital technology may lie in tailored policy interventions and digital skills training for farmers. Finally, this study provides empirical evidence from rural China on the role of the digital economy in strengthening farmers’ adaptive capacity against disaster risks. While these findings are context-specific, they may still provide valuable insights for other agriculture-dependent developing countries facing persistent climate risks.