The Poverty and Welfare Impacts of Climate Change Quantifying the Effects, Identifying the Adaptation Strategies

From: Yona Maro

In Sub-Saharan Africa, where population growth exceeded the rate of poverty reduction, the number of extremely poor people increased from 290 million in 1990 to 356 million in 2008, yet over 2005-08, the region’s poverty rate nonetheless ‘fell 4.8 percentage points to less than 50 percent the largest drop in Sub-Saharan Africa since international poverty rates have been computed,’ according to the latest edition of the World Development Indicators (WDI) (World Bank 2012). Although progress has been slower at the $2-a-day poverty line, the WDI noted that an increase in the absolute number of people living on $1.25-$2.00 a day reflects both the upward movement from extreme poverty and ‘the vulnerabilities still faced by a great many people in the world.’ climate change is likely to reduce agricultural productivity, especially in the tropical regions, and to directly affect poor people’s livelihood assets including health, access to water and other natural resources, homes, and infrastructure (World Bank 2010).

Moreover, increasing climatic variability manifesting as more frequent and erratic weather extremes, or ‘weather shocks’ will likely make poor households even more vulnerable, which could in turn exacerbate the incidence, severity, and persistence of poverty in developing countries. This volume not only surveys the research terrain concerning the effects of climate change on poverty but also looks closely at vulnerable rural populations (in a developing country, Indonesia, and in the newly industrialized Mexico) where weather shocks have measurable short term if not immediate effects on the farming livelihoods many depend on for both income and subsistence. The low-income farmers of rice in Indonesia and of corn and other staple crops in Mexico are at the human forefront of climate change.

https://openknowledge.worldbank.org/bitstream/handle/10986/9384/714510PUB097800C0disclosed070250120.pdf?sequence=1


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