IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/10683.html

The Welfare Cost of Drought in Sub-Saharan Africa

Author

Listed:
  • Gascoigne, Jon
  • Baquie, Sandra
  • Vinha, Katja Pauliina
  • Skoufias, Emmanuel
  • Calcutt, Evie
  • Kshirsagar, Varun Sridhar
  • Meenan, Conor
  • Hill, Ruth

Abstract

This paper quantifies the impact of drought on household consumption for five main agroecological zones in Africa, developing vulnerability (or damage) functions of the relationship between rainfall deficits and poverty. Damage functions are a key element in models that quantify the risk of extreme weather and the impacts of climate change. Although these functions are commonly estimated for storm or flood damages to buildings, they are less often available for income losses from droughts. The paper takes a regional approach to the analysis, developing standardized hazard definitions and methods for matching hazard and household data, allowing survey data from close to 100,000 households to be used in the analysis. The damage functions are used to quantify the impact of historical weather conditions on poverty for eight countries, highlighting the risk to poverty outcomes that weather variability causes. National poverty rates are 1–12 percent higher, depending on the country, under the worst weather conditions relative to the best conditions observed in the past 13 years. This amounts to an increase in the total poverty gap that ranges from US$4 million to US$2.4 billion (2011 purchasing power parity).

Suggested Citation

  • Gascoigne, Jon & Baquie, Sandra & Vinha, Katja Pauliina & Skoufias, Emmanuel & Calcutt, Evie & Kshirsagar, Varun Sridhar & Meenan, Conor & Hill, Ruth, 2024. "The Welfare Cost of Drought in Sub-Saharan Africa," Policy Research Working Paper Series 10683, The World Bank.
  • Handle: RePEc:wbk:wbrwps:10683
    as

    Download full text from publisher

    File URL: https://documents.worldbank.org/curated/en/099325301292478621/pdf/IDU-ae0eac0e-45d2-4c62-8002-56b672eb8155.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mummolo, Jonathan & Peterson, Erik, 2018. "Improving the Interpretation of Fixed Effects Regression Results," Political Science Research and Methods, Cambridge University Press, vol. 6(4), pages 829-835, October.
    2. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769, December.
    3. Maximilian Auffhammer, 2018. "Quantifying Economic Damages from Climate Change," Journal of Economic Perspectives, American Economic Association, vol. 32(4), pages 33-52, Fall.
    4. Clarke, Daniel J. & Dercon, Stefan, 2016. "Dull Disasters?: How planning ahead will make a difference," OUP Catalogue, Oxford University Press, number 9780198785576.
    5. Hill, Ruth Vargas & Porter, Catherine, 2017. "Vulnerability to Drought and Food Price Shocks: Evidence from Ethiopia," World Development, Elsevier, vol. 96(C), pages 65-77.
    6. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2014. "What Do We Learn from the Weather? The New Climate-Economy Literature," Journal of Economic Literature, American Economic Association, vol. 52(3), pages 740-798, September.
    7. Ayala Wineman & Nicole M. Mason & Justus Ochieng & Lilian Kirimi, 2017. "Weather extremes and household welfare in rural Kenya," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(2), pages 281-300, April.
    8. Sandra Baquié & Guillem Foucault, 2023. "Background Note on Bringing Climate Change into Vulnerability Analysis," World Bank Publications - Reports 40533, The World Bank Group.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nekeisha Spencer & Eric Strobl, 2025. "Modeling the Impact of Extreme Climate Events on Household Welfare: An Empirical Framework," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 88(4), pages 921-964, April.
    2. Tarsia, Romano, 2024. "Heterogeneous effects of weather shocks on firm economic performance," LSE Research Online Documents on Economics 124251, London School of Economics and Political Science, LSE Library.
    3. Baez, Javier E. & Kshirsagar, Varun & Skoufias, Emmanuel, 2024. "Drought-sensitive targeting and child growth faltering in Southern Africa," World Development, Elsevier, vol. 182(C).
    4. Nguyen, Ha Trong & Mitrou, Francis, 2025. "Fertility responses to tropical cyclones: Causal evidence and mechanisms," Journal of Health Economics, Elsevier, vol. 104(C).
    5. Naser Amanzadeh & Toshi H. Arimura & Mohammad Vesal & Seyed Farshad Fatemi Ardestani, 2021. "The Distributional Effects of Climate Change:Evidence from Iran," RIEEM Discussion Paper Series 2007, Research Institute for Environmental Economics and Management, Waseda University.
    6. Demissie, Birhan S. & Kasie, Tesfahun A. & Upton, Joanna B. & Blom, Sylvia A., "undated". "Climate Shocks And Resilience: Evidence From Rural Ethiopia," PRCI Research Papers 320707, Michigan State University, Department of Agricultural, Food and Resource Economics, Food Security Group.
    7. Mérel, Pierre & Paroissien, Emmanuel & Gammans, Matthew, 2024. "Sufficient statistics for climate change counterfactuals," Journal of Environmental Economics and Management, Elsevier, vol. 124(C).
    8. Sedova, Barbora & Kalkuhl, Matthias, 2020. "Who are the climate migrants and where do they go? Evidence from rural India," World Development, Elsevier, vol. 129(C).
    9. Tran, Thi Xuyen, 2021. "Typhoon and Agricultural Production Portfolio -Empirical Evidence for a Developing Economy," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242411, Verein für Socialpolitik / German Economic Association.
    10. Fritz, Manuela, 2021. "Temperature and non-communicable diseases: Evidence from Indonesia's primary health care system," Passauer Diskussionspapiere, Volkswirtschaftliche Reihe V-84-21, University of Passau, Faculty of Business and Economics.
    11. Komeda, Kenji, 2021. "Environmental Factors and Internal Migration in India," Warwick-Monash Economics Student Papers 20, Warwick Monash Economics Student Papers.
    12. Andreas Georgiadis & Liza Benny & Paul Dornan & Jere Behrman, 2021. "Maternal Undernutrition in Adolescence and Child Human Capital Development Over the Life Course: Evidence from an International Cohort Study," Economica, London School of Economics and Political Science, vol. 88(352), pages 942-968, October.
    13. Jacopo Ponticelli & Qiping Xu & Stefan Zeume, 2023. "Temperature and Local Industry Concentration," Working Papers 23-51, Center for Economic Studies, U.S. Census Bureau.
    14. Simo Leppänen & Laura Solanko & Riitta Kosonen, 2017. "The Impact of Climate Change on Regional Government Expenditures: Evidence from Russia," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(1), pages 67-92, May.
    15. Gabriel J. Felbermayr & Jasmin Katrin Gröschl & Benedikt Heid, 2020. "Quantifying the Supply and Demand Effects of Natural Disasters Using Monthly Trade Data," CESifo Working Paper Series 8798, CESifo.
    16. Leppänen, Simo & Solanko, Laura & Kosonen, Riitta, 2015. "Could climate change affect government expenditures? Early evidence from the Russian regions," BOFIT Discussion Papers 27/2015, Bank of Finland, Institute for Economies in Transition.
    17. Eva O. Arceo-Gómez & Danae Hernández-Cortés & Alejandro López-Feldman, 2020. "Droughts and rural households’ wellbeing: evidence from Mexico," Climatic Change, Springer, vol. 162(3), pages 1197-1212, October.
    18. Cho, Hyunkuk, 2017. "The effects of summer heat on academic achievement: A cohort analysis," Journal of Environmental Economics and Management, Elsevier, vol. 83(C), pages 185-196.
    19. Mavisakalyan, Astghik & Otrachshenko, Vladimir & Popova, Olga, 2024. "Natural Disasters and Acceptance of Intimate Partner Violence: The Global Evidence," IZA Discussion Papers 17172, Institute of Labor Economics (IZA).
    20. Ding, Yugang & Xu, Jiangmin, 2023. "Global vulnerability of agricultural commodities to climate risk: Evidence from satellite data," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 669-687.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:10683. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.