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Welfare Impacts of Climate Shocks: Evidence from Uganda

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  • Asfaw, Solomon
  • Mortari, Andrea Piano
  • Arslan, Aslihan
  • Karfakis, Panagiotis
  • Lipper, Leslie

Abstract

This paper evaluates the effects of weather/climate shocks on household welfare using a nationally representative panel data from Uganda together with a set of novel climate variation indicators. Where the effect of climate/weather variability has a significantly negative effect on household welfare, we further test the hypotheses that policy-relevant mechanisms can be effective means of mitigating the negative welfare effects. In general we obtain very few significant results with respect to climate/weather shock variables which might point towards a consumption and income smoothing behavior by the households, whose welfare level is not affected by the weather shocks. With regards to the different shocks definition, the reference period used to define the shock does not matter since the coefficients and the signs do not change with the reference period. Different policy action variables have also heterogeneous impact across different outcome variables in terms of mitigating the negative impact of climate/weather shocks.

Suggested Citation

  • Asfaw, Solomon & Mortari, Andrea Piano & Arslan, Aslihan & Karfakis, Panagiotis & Lipper, Leslie, 2015. "Welfare Impacts of Climate Shocks: Evidence from Uganda," 2015 Conference, August 9-14, 2015, Milan, Italy 230217, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:230217
    DOI: 10.22004/ag.econ.230217
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    2. Haile, B. & Azzarri, C. & Heady, D. & You, L., 2018. "Climate, climate shocks and child nutrition in Africa’s diverse farming systems," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275928, International Association of Agricultural Economists.
    3. Gustavo Anríquez & Gabriela Toledo, 2019. "De-climatizing food security: Lessons from climate change micro-simulations in Peru," PLOS ONE, Public Library of Science, vol. 14(9), pages 1-24, September.

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    Environmental Economics and Policy; International Development;

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