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Weather and Welfare in Ethiopia

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

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.

Suggested Citation

  • Foltz, Jeremy D. & Gars, Jared & Özdoğan, Mutlu & Simane, Belay & Zaitchik, Ben, 2013. "Weather and Welfare in Ethiopia," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150298, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea13:150298
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    File URL: http://purl.umn.edu/150298
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    References listed on IDEAS

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    1. Skoufias, Emmanuel & Rabassa, Mariano & Olivieri, Sergio & Brahmbhatt, Milan, 2011. "The Poverty Impacts of Climate Change," World Bank - Economic Premise, The World Bank, issue 51, pages 1-5, March.
    2. repec:reg:rpubli:291 is not listed on IDEAS
    3. 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.
    4. 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.
    5. 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.
    6. Dercon, Stefan, 2004. "Growth and shocks: evidence from rural Ethiopia," Journal of Development Economics, Elsevier, vol. 74(2), pages 309-329, August.
    7. Dorte Verner, 2010. "Reducing Poverty, Protecting Livelihoods, and Building Assets in a Changing Climate : Social Implications of Climate Change for Latin America and the Caribbean," World Bank Publications, The World Bank, number 2473.
    8. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2009. "Temperature and Income: Reconciling New Cross-Sectional and Panel Estimates," American Economic Review, American Economic Association, vol. 99(2), pages 198-204, May.
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    Cited by:

    1. 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.
    2. 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.
    3. repec:eee:wdevel:v:103:y:2018:i:c:p:40-59 is not listed on IDEAS
    4. Karim, Azreen, 2016. "The household response to persistent natural disasters: Evidence from Bangladesh," Working Paper Series 4968, Victoria University of Wellington, School of Economics and Finance.

    More about this item

    Keywords

    Consumer/Household Economics; International Development;

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