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Climate Shocks, Household Resource Allocation, and Vulnerability to Poverty

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  • Ziming Zhou

    (School of Business Administration, Zhongnan University of Economics and Law, Wuhan 430073, China)

  • Zhiming Yu

    (School of Business Administration, Zhongnan University of Economics and Law, Wuhan 430073, China)

  • Haitao Wu

    (School of Business Administration, Zhongnan University of Economics and Law, Wuhan 430073, China)

Abstract

Climate change is widespread, rapid, and is intensifying. Using Chinese disaster data and the China Family Panel Studies (CFPS) data, this study examines the impact of climate shocks on the vulnerability of farm households to poverty and the mechanism of household resource allocation in this process. The results show that (a) climate shocks can significantly increase the poverty vulnerability of farm households. (b) The effect of climate shocks on farm household poverty vulnerability is regionally and individually heterogeneous. Climate non-security zones, risk-averse farmers, and low social capital farmers are more vulnerable to climate shocks and fall into poverty. (c) The mediating effects suggest that climate shocks affect the poverty vulnerability of farm households by influencing their developmental investment, productive investment, and precautionary saving. The paper finally concludes and discusses some policy implications in the national response to climate change and transformation of farmers’ livelihoods.

Suggested Citation

  • Ziming Zhou & Zhiming Yu & Haitao Wu, 2022. "Climate Shocks, Household Resource Allocation, and Vulnerability to Poverty," Agriculture, MDPI, vol. 12(7), pages 1-16, July.
    • Handle: RePEc:gam:jagris:v:12:y:2022:i:7:p:971-:d:856755
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    References listed on IDEAS

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    Cited by:

    1. Yifeng Xie & Haitao Wu & Ruikuan Yao, 2023. "The Impact of Climate Change on the Urban–Rural Income Gap in China," Agriculture, MDPI, vol. 13(9), pages 1-17, August.

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