Temperature shocks, growth and poverty thresholds: evidence from rural Tanzania

Marco Letta, Pierluigi Montalbano and Richard Tol

No 13/17, Working Papers from Sapienza University of Rome, DISS

Abstract: Using the LSMS-ISA Tanzania National Panel Survey by the World Bank, we study the relationship between rural household consumption growth and temperature shocks over the period 2008 – 2013. Temperature shocks have a negative and significant impact on household growth only if their initial consumption lies below a critical threshold. As such, temperature shocks slow income convergence among households. Agricultural yields and labour productivity are the main transmission channels. These findings support the Schelling Conjecture: economic development would allow poor farming households to cope with climate change, and closing the yield gap and modernizing agriculture is crucial for adaptation to the negative impacts of global warming.

Keywords: weather shocks; climate change; household consumption growth; rural development. (search for similar items in EconPapers)
JEL-codes: I32 O12 Q12 Q54 (search for similar items in EconPapers)
Date: 2017-11
New Economics Papers: this item is included in nep-agr, nep-dev and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.diss.uniroma1.it/sites/default/files/al ... taetal_wp13_2017.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.diss.uniroma1.it:80 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)

Related works:
Journal Article: Temperature shocks, short-term growth and poverty thresholds: Evidence from rural Tanzania (2018)
Working Paper: Temperature shocks, growth and poverty thresholds: evidence from rural Tanzania (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:saq:wpaper:13/17

Access Statistics for this paper

More papers in Working Papers from Sapienza University of Rome, DISS Contact information at EDIRC.
Bibliographic data for series maintained by Pierluigi Montalbano ().