EconPapers    
Economics at your fingertips  
 

Extreme Weather and Poverty Risk: Evidence from Multiple Shocks in Mozambique

Javier Baez (), German Caruso () and Chiyu Niu ()
Additional contact information
German Caruso: Latin America and Caribbean Region, World Bank
Chiyu Niu: University of Illinois

Economics of Disasters and Climate Change, 2020, vol. 4, issue 1, No 5, 103-127

Abstract: Abstract This paper investigates the effects of multiple weather shocks on household welfare in Mozambique, as well as some of the coping responses and price mechanisms at play. The analysis employs a triple-difference strategy that exploits variation in the shocks across space, time, and cropping cycles. The findings demonstrate high levels of vulnerability across various weather risks. Experiencing a cyclone, flood, or drought leads to a drop of up to 25–30% in per capita food consumption and around 0.4 fewer meals per day per person. Poverty increased by 12 and 17.5 percentage points in two of the three events analyzed. Human capital accumulation, as measured by school participation and morbidity, is disrupted. Households follow risk-coping strategies, such as increasing the labor supply of their children or selling assets, which entail partial protection in the aftermath of the shock at the cost of lower income growth in the future. In disentangling the channels, the paper shows that maize prices exhibit higher volatility in food markets that are spatially close to the most affected areas. The results are robust to several robustness checks, including analysis of bias from selective migration, and indicate that household welfare and economic mobility in low-income environments are constrained by uninsured weather risks.

Keywords: Natural disasters; Long-term human welfare; Poverty; Human capital (search for similar items in EconPapers)
JEL-codes: I3 J2 O1 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s41885-019-00049-9 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Working Paper: Extreme Weather and Poverty Risk: Evidence from Multiple Shocks in Mozambique (2018) Downloads
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:spr:ediscc:v:4:y:2020:i:1:d:10.1007_s41885-019-00049-9

Ordering information: This journal article can be ordered from
https://www.springer ... mental/journal/41885

DOI: 10.1007/s41885-019-00049-9

Access Statistics for this article

Economics of Disasters and Climate Change is currently edited by Ilan Noy and Shunsuke Managi

More articles in Economics of Disasters and Climate Change from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2023-01-30
Handle: RePEc:spr:ediscc:v:4:y:2020:i:1:d:10.1007_s41885-019-00049-9