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Book
Distributional implications of climate change in India
Authors: --- ---
Year: 2011 Publisher: Washington, D.C., The World Bank,

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Abstract

Global warming is expected to heavily impact agriculture, the dominant source of livelihood for the world's poor. Yet, little is known about the distributional implications of climate change at the sub-national level. Using a simple comparative statics framework, this paper analyzes how changes in the prices of land, labor, and food induced by modest temperature increases over the next three decades will affect household-level welfare in India. The authors predict a substantial fall in agricultural productivity, even allowing for farmer adaptation. Yet, this decline will not translate into a sharp drop in consumption for the majority of rural households, who derive their income largely from wage employment. Overall, the welfare costs of climate change fall disproportionately on the poor. This is true in urban as well as in rural areas, but, in the latter sector only after accounting for the effects of rising world cereal prices. Adaptation appears to primarily benefit the non-poor, since they own the lion's share of agricultural land. The results suggest that poverty in India will be roughly 3-4 percentage points higher after thirty years of rising temperatures than it would have been had this warming not occurred.


Book
Climate Change Impacts and Mitigation in the Developing World : An Integrated Assessment of the Agriculture and Forestry Sectors.
Authors: --- --- --- --- --- et al.
Year: 2015 Publisher: Washington, D.C. : The World Bank,

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This paper conducts an integrated assessment of climate change impacts and climate mitigation on agricultural commodity markets and food availability in low- and middle-income countries. The analysis uses the partial equilibrium model GLOBIOM to generate scenarios to 2080. The findings show that climate change effects on the agricultural sector will increase progressively over the century. By 2030, the impact of climate change on food consumption is moderate but already twice as large in a world with high inequalities than in a more equal world. In the long run, impacts could be much stronger, with global average calorie losses of 6 percent by 2050 and 14 percent by 2080. A mitigation policy to stabilize climate below 2?C uniformly applied to all regions as a carbon tax would also result in a 6 percent reduction in food availability by 2050 and 12 percent reduction by 2080 compared to the reference scenario. To avoid more severe impacts of climate change mitigation on development than climate change itself, revenue from carbon pricing policies will need to be redistributed appropriately. Overall, the projected effects of climate change and mitigation on agricultural markets raise important issues for food security in the long run, but remain more limited in the medium term horizon of 2030. Thus, there are opportunities for low- and middle-income countries to pursue immediate development needs and thus prepare for later periods when adaptation needs and mitigation efforts will become the greatest.


Book
Too little too late : Welfare impacts of rainfall shocks in rural Indonesia
Authors: --- ---
Year: 2011 Publisher: Washington, D.C., The World Bank,

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The authors use regression analysis to assess the potential welfare impact of rainfall shocks in rural Indonesia. In particular, they consider two shocks: (i) a delay in the onset of monsoon and (ii) a significant shortfall in the amount of rain in the 90 day post-onset period. Focusing on households with family farm businesses, the analysis finds that a delay in the monsoon onset does not have a significant impact on the welfare of rice farmers. However, rice farm households located in areas exposed to low rainfall following the monsoon are negatively affected. Rice farm households appear to be able to protect their food expenditure in the face of weather shocks at the expense of lower nonfood expenditures per capita. The authors use propensity score matching to identify community programs that might moderate the welfare impact of this type of shock. Access to credit and public works projects in communities were among the programs with the strongest moderating effects. This is an important consideration for the design and implementation of adaptation strategies.


Book
Mapping vulnerability to climate change
Authors: ---
Year: 2011 Publisher: Washington, D.C., The World Bank,

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This paper develops a methodology for regional disaggregated estimation and mapping of the areas that are ex-ante the most vulnerable to the impacts of climate change and variability and applies it to Tajikistan, a mountainous country highly vulnerable to the impacts of climate change. The authors construct the vulnerability index as a function of exposure to climate variability and natural disasters, sensitivity to the impacts of that exposure, and capacity to adapt to ongoing and future climatic changes. This index can inform decisions about adaptation responses that might benefit from an assessment of how and why vulnerability to climate change varies regionally and it may therefore prove a useful tool for policy analysts interested in how to ensure pro-poor adaptation in developing countries. Index results for Tajikistan suggest that vulnerability varies according to socio-economic and institutional development in ways that do not follow directly from exposure or elevation: geography is not destiny. The results indicate that urban areas are by far the least vulnerable, while the eastern Region of Republican Subordination mountain zone is the most vulnerable. Prime agricultural valleys are also relatively more vulnerable, implying that adaptation planners do not necessarily face a trade-off between defending vulnerable areas and defending economically important areas. These results lend support to at least some elements of current adaptation practice.


Book
Implications of a Lowered Damage Trajectory for Mitigation in a Continuous-Time Stochastic Model
Author:
Year: 2011 Publisher: Washington, D.C., The World Bank,

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This paper provides counterexamples to the idea that mitigation of greenhouse gases causing climate change, and adaptation to climate change, are always and everywhere substitutes. The author considers optimal policy for mitigating greenhouse gas emissions when climate damages follow a geometric Brownian motion process with positive drift, and the trajectory for damages can be down-shifted by adaptive activities, focusing on two main cases: 1) damages are reduced proportionately by adaptation for any given climate impact ("reactive adaptation"); and 2) the growth path for climate damages is down-shifted ("anticipatory adaptation"). In this model mitigation is a lumpy one-off decision. Policy to reduce damages for given emissions is continuous in case 1, but may be lumpy in case 2, and reduces both expectation and variance of damages. Lower expected damages promote mitigation, and reduced variance discourages it (as the option value of waiting is reduced). In case 1, the last effect may dominate. Mitigation then increases when damages are dampened: mitigation and adaptation are complements. In case 2, mitigation and adaptation are always substitutes.


Book
Rural Households in a Changing Climate
Authors: --- ---
Year: 2013 Publisher: Washington, D.C., The World Bank,

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This paper argues that climate change poses two distinct, if related, sets of challenges for poor rural households: challenges related to the increasing frequency and severity of weather shocks and challenges related to long-term shifts in temperature, rainfall patterns, water availability, and other environmental factors. Within this framework, the paper examines evidence from existing empirical literature to compose an initial picture of household-level strategies for adapting to climate change in rural settings. The authors find that although households possess numerous strategies for managing climate shocks and shifts, their adaptive capacity is insufficient for the task of maintaining-let alone improving-household welfare. They describe the role of public policy in fortifying the ability of rural households to adapt to a changing climate.


Book
Households and Heat Stress : Estimating the Distributional Consequences of Climate Change.
Authors: --- --- ---
Year: 2015 Publisher: Washington, D.C. : The World Bank,

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Recent economic research documents a range of adverse welfare consequences from extreme heat stress, including health, labor productivity, and direct consumption disutility impacts. Without rapid adaptation, climate change will increase the burden of heat stress experienced by much of the world's population in the coming decades. What will the distributional consequences of this added heat stress be, and how might this affect optimal climate policy? Using detailed survey data of household wealth in 690,745 households across 52 countries, this paper finds evidence suggesting that the welfare impacts of added heat stress caused by climate change may be regressive. Specifically, the analysis finds that poorer households tend to be located in hotter locations across and within countries, and poorer individuals are more likely to work in occupations with greater exposure to the elements not only across but also within countries. These findings-combined with the fact that current social cost of carbon estimates do not include climate damages arising from the productivity impacts of heat stress-suggest that optimal climate policy, especially when allowing for declining marginal utility of consumption, involves more stringent abatement than currently suggested, and that redistributive adaptation policies may be required to reduce the mechanical inequities in welfare impacts arising from climate change.


Book
Rural Households in a Changing Climate
Authors: --- ---
Year: 2013 Publisher: Washington, D.C., The World Bank,

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Abstract

This paper argues that climate change poses two distinct, if related, sets of challenges for poor rural households: challenges related to the increasing frequency and severity of weather shocks and challenges related to long-term shifts in temperature, rainfall patterns, water availability, and other environmental factors. Within this framework, the paper examines evidence from existing empirical literature to compose an initial picture of household-level strategies for adapting to climate change in rural settings. The authors find that although households possess numerous strategies for managing climate shocks and shifts, their adaptive capacity is insufficient for the task of maintaining-let alone improving-household welfare. They describe the role of public policy in fortifying the ability of rural households to adapt to a changing climate.


Book
Weather and Child Health in Rural Nigeria
Authors: --- ---
Year: 2012 Publisher: Washington, D.C., The World Bank,

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The effect of weather shocks on children's anthropometrics is investigated using the two most recent rounds of the Nigeria Demographic and Health Survey. For this purpose, climate data for each survey cluster are interpolated using daily weather-station records from the national network. The findings reveal that rainfall shocks have a statistically significant and robust impact on child health in the short run for both weight-for-height and height-for-age, and the incidence of diarrhea. The impacts of weather shocks on health are of considerable magnitude; however, children seem to catch up with their cohort rapidly after experiencing a shock. The paper does not find any evidence of nonlinear impacts of weather variability on children's health, suggesting that a moderate increase in future rainfall variability is not likely to bring additional health costs. Finally, it appears that the impact of these shocks is the same for young boys and girls, which suggests that there is no gender-based discrimination in the allocation of resources within households.


Book
The poverty impacts of climate change : A review of the evidence
Authors: --- ---
Year: 2011 Publisher: Washington, D.C., The World Bank,

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Climate change is believed to represent a serious challenge to poverty reduction efforts around the globe. This paper conducts an up-to-date review of three main strands of the literature analyzing the poverty impacts of climate change : (i) economy-wide growth models incorporating climate change impacts to work out consistent scenarios for how climate change might affect the path of poverty over the next decades; (ii) studies focusing on the poverty impacts of climate change in the agricultural sector; and (iii) studies exploring how past climate variability impacts poverty. The analysis finds that the majority of the estimates of the poverty impacts tend to ignore the effect of aggregate economic growth on poverty and household welfare. The empirical evidence available to date suggests that climate change will slow the pace of global poverty reduction, but the expected poverty impact will be relatively modest and far from reversing the major decline in poverty that is expected to occur over the next 40 years as a result of continued economic growth. The studies focusing on the sector-specific channels of impacts of climate change suggest that the estimated impacts of climate change on agricultural yields are generally a poor predictor of the poverty impacts of climate change at the national level due to heterogeneity in the ability of households to adapt. It also appears that the impacts of climate change are generally regressive, that is, they fall more heavily on the poor than the rich.

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