Climate Shocks, Household Resource Allocation, and Vulnerability to Poverty

Ziming Zhou, Zhiming Yu and Haitao Wu
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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

Agriculture, 2022, vol. 12, issue 7, 1-16

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.

Keywords: climate shocks; household resource allocation; vulnerability to poverty; developmental investment; productive investment; precautionary saving; mediating effects (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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