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

Elena Paglialunga (), Andrea Coveri () and Antonello Zanfei ()
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Elena Paglialunga: Department of Economics, Society & Politics, Università di Urbino Carlo Bo
Antonello Zanfei: Department of Economics, Society & Politics, Università di Urbino Carlo Bo

No 2003, Working Papers from University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini

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.

Keywords: Inequality; Climate change; Agriculture; FDI; Global value chains. (search for similar items in EconPapers)
JEL-codes: D63 Q54 F21 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2020, Revised 2020
New Economics Papers: this item is included in nep-agr and nep-env
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http://www.econ.uniurb.it/RePEc/urb/wpaper/WP_20_03.pdf First version, 2020 (application/pdf)

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