This thesis addresses two important issues of environmental and resource economics: how agricultural households adapt to climate change (CC) and how the households recover from climate hazards. Chapter 1 attempts to enunciate the perspective of the overall research and the rationale for researching on Bangladesh. It summarizes the global evidences of CC and disaster, their impacts, vulnerabilities in agriculture sector, significance of adaptation and poverty impact of disaster. Chapter 2 examines whether crop choice is affected by CC and the extent to which households switch their crops in response to the CC scenarios. It finds that crop choice is climate-sensitive and a shift in crop choices will take place in Bangladesh in response to CC scenarios. This research also finds that crop choice will be more sensitive to change in temperature than change in rainfall. Chapter 3 examines the effect of CC on crop diversification and the households’ response to CC scenarios. It finds that crop diversity is climate sensitive and this diversity in different locations varies with climatic conditions. Effects of rainfall scenarios on crop diversity are much lower compared to the effects of temperature. Chapter 4 investigates the impact of cyclone on consumption and income dynamics in a quasi-experimental setting and finds that low income people are more sensitive of their asset loss to income generation compared to the high income people, and disaster causes income loss, but, people show their resilience in accelerating higher income growth compared to the non-affected areas. Chapter 5 examines poverty group dynamics in the post-shock period and the existence of a poverty trap in the cyclone affected coastal region of Bangladesh. It finds that asset loss or asset holding impacts the dynamism of the poverty groups and poverty traps exists at low levels of income in the disaster affected areas compared to the unaffected areas
