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Weather and Welfare in Ethiopia

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  • Foltz, Jeremy
  • Gars, Jared
  • Özdoğan, Mutlu
  • Simane, Belay
  • Zaitchik, Ben
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    Abstract

    Long term increases in rural incomes and productivity in Ethiopia are threatened by weather fluctuations. Changes in weather variability and the number of extreme weather events (specifically droughts) has the capacity to undermine development efforts if it translates into decreased food availability and incomes. This study integrates downscaled daily weather data with household surveys to study the impact of weather and temperature on rural household welfare in Ethiopia. Our panel data econometric approach is one of the first to measure the impacts of weather on household consumption directly. Generally, we find that food and non-food consumption are a function of weather in Ethiopia, and that this link is lessening over time but more pronounced for poor households. Evidence from these survey villages suggests that being in a vulnerable area may not actually result in being worse off relative to being poor in a non vulnerable area. These findings have implications for focusing climate mitigation strategies on the poor regardless of location rather than just the poorest regions.

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    Bibliographic Info

    Paper provided by Agricultural and Applied Economics Association in its series 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. with number 150298.

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    Date of creation: 2013
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    Handle: RePEc:ags:aaea13:150298

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    Keywords: Consumer/Household Economics; International Development;

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    1. Stefan Dercon, 2004. "Growth and Shocks: evidence from rural Ethiopia," Development and Comp Systems 0409036, EconWPA.
    2. Dercon, Stefan & Christiaensen, Luc, 2011. "Consumption risk, technology adoption and poverty traps: Evidence from Ethiopia," Journal of Development Economics, Elsevier, vol. 96(2), pages 159-173, November.
    3. Emmanuel Skoufias & Mariano Rabassa & Sergio Olivieri & Milan Brahmbhatt, 2011. "The Poverty Impacts of Climate Change," World Bank Other Operational Studies 10102, The World Bank.
    4. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2009. "Temperature and Income: Reconciling New Cross-Sectional and Panel Estimates," NBER Working Papers 14680, National Bureau of Economic Research, Inc.
    5. Skoufias, Emmanuel & Vinha, Katja & Conroy, Hector V., 2011. "The impacts of climate variability on welfare in rural Mexico," Policy Research Working Paper Series 5555, The World Bank.
    6. Stefan Dercon & John Hoddinott & Tassew Woldehanna, 2005. "Shocks and Consumption in 15 Ethiopian Villages, 1999--2004," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 14(4), pages 559-585, December.
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    Cited by:
    1. Noy, Ilan & Karim, Azreen, 2013. "Poverty, inequality and natural disasters – A survey," Working Paper Series 2974, Victoria University of Wellington, School of Economics and Finance.
    2. Karim, Azreen & Noy, Ilan, 2014. "Poverty and natural disasters: A meta-analysis," Working Paper Series 3234, Victoria University of Wellington, School of Economics and Finance.

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