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Climate change and inequality in a global context. Exploring climate induced disparities and the reaction of economic systems

Author

Listed:
  • Elena Paglialunga

    (Department of Economics, Society & Politics, Università di Urbino Carlo Bo)

  • Andrea Coveri

    (Department of Economics, Society & Politics, Università di Urbino Carlo Bo)

  • Antonello Zanfei

    (Department of Economics, Society & Politics, Università di Urbino Carlo Bo)

Abstract

This paper investigates the impact of climate change on within-country income inequality with reference to over 150 nations in 2003-2017. Specifically, we control for a large number of determinants of income disparities detected by extant literature, and focus on agriculture as one of the most crucial channels in the climate change-inequality nexus. We find that temperature increases and precipitation anomalies have significant adverse effects on within-country inequality, especially in the presence of larger shares of population in rural areas and of workers in agriculture. Furthermore, our results show that the diversification of inward FDIs across value chain activities constitutes a resilience-enhancing factor which allows to alleviate the adverse consequences of climate change on income distribution.

Suggested Citation

  • Elena Paglialunga & Andrea Coveri & Antonello Zanfei, 2020. "Climate change and inequality in a global context. Exploring climate induced disparities and the reaction of economic systems," Working Papers 2003, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2020.
  • Handle: RePEc:urb:wpaper:20_03
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    Keywords

    Inequality; Climate change; Agriculture; FDI; Global value chains.;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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