Climate Change and Poverty : An Analytical Framework

Climate change and climate policies will affect poverty reduction efforts through direct and immediate impacts on the poor and by affecting factors that condition poverty reduction, such as economic growth. This paper explores this relation between...

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Bibliographic Details
Main Authors:	Hallegatte, Stephane, Bangalore, Mook, Bonzanigo, Laura, Fay, Marianne, Narloch, Ulf, Rozenberg, Julie, Vogt-Schilb, Adrien
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank Group, Washington, DC 2014
Subjects:	ACCESS TO INFORMATION ACCESS TO INFRASTRUCTURE AGRICULTURAL INCOMES AGRICULTURAL PRODUCTIVITY AGRICULTURAL SECTOR AGRICULTURAL SELF-EMPLOYMENT AGRICULTURAL WAGE AGRICULTURAL WORKERS AGRICULTURAL YIELDS ALLOCATION ARID AREAS ASSET DEPLETION ASSET HOLDINGS ASSET LOSSES BASIC INFRASTRUCTURE BENEFICIARIES BENEFICIARY CARBON PRICE CARBON TAX CASH TRANSFERS CHILD HEALTH CLEAN ENVIRONMENT CLIMATE CLIMATE CHANGE CLIMATE CHANGE IMPACTS CLIMATE CHANGE VULNERABILITY CLIMATE POLICIES CLIMATE POLICY CLIMATE VARIABILITY COLD CLIMATES CONFLICT CONSUMPTION SMOOTHING COPING MECHANISMS CROP YIELDS DETERMINANT OF POVERTY DISCOUNT RATE DISCOUNT RATES DISTRIBUTIONAL IMPACTS DIVERSIFICATION DROUGHT DURABLE GOODS ECONOMIC ACTIVITY ECONOMIC COSTS ECONOMIC GROWTH ECONOMIC IMPACT ECONOMIC IMPACT OF CLIMATE CHANGE ECONOMIC IMPACTS ECOSYSTEM ELIMINATION OF POVERTY EMERGENCY RESPONSE EMISSIONS EMPLOYMENT OPPORTUNITIES ENERGY CONSUMPTION ENERGY EFFICIENCY ENERGY EFFICIENT LIGHT BULBS ENERGY PRICES ENERGY SUBSIDIES ENVIRONMENTAL CHANGES ENVIRONMENTAL DEGRADATION EXTREME EVENTS EXTREME POVERTY EXTREME TEMPERATURE EXTREME WEATHER EXTREME WEATHER EVENTS FAMILY MEMBERS FAMINE FARM SIZE FARMER FINANCIAL CAPITAL FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FISCAL POLICIES FOOD CONSUMERS FOOD CONSUMPTION FOOD CROPS FOOD MARKETS FOOD PRICE FOOD PRICES FOOD PRODUCTION FOOD SECURITY FOOD SHARE FOREST DEGRADATION GLOBAL MARKETS HEALTH EXPENDITURES HOURLY WAGE HOUSEHOLD CONSUMPTION HOUSEHOLD DEMOGRAPHICS HOUSEHOLD INCOME HOUSEHOLD LEVEL HOUSEHOLD POVERTY HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HOUSING HUMAN ASSETS HUMAN CAPITAL HURRICANE IMPACT ON POVERTY IMPACT ON POVERTY REDUCTION IMPACTS OF CLIMATE CHANGE IMPORTS INCOME INCOME DISTRIBUTION INCOME GROWTH INCOME HOUSEHOLDS INCOME LOSSES INCOME ON FOOD INCOME POVERTY INCOME QUINTILE INCOME SUPPORT INCOME VOLATILITY INCOME-GENERATING ACTIVITIES INFORMAL SAFETY NETS INLAND REGIONS INSURANCE INSURANCE COVERAGE INSURANCE MECHANISMS IRRIGATION JOBS LABOR PRODUCTIVITY LACK OF INFORMATION LACK OF INFRASTRUCTURE LAND AVAILABILITY LAND PRICES LAND TENURE LAND TITLES LAND USE LIMITED ACCESS LIVING CONDITIONS LOWER DEMAND MALNUTRITION MARKET FAILURES MARKET PRICES MORAL HAZARD NATURAL ASSETS NATURAL DISASTER NATURAL DISASTERS NET FOOD CONSUMERS NUTRITION OZONE PENSION POOR POOR ADULTS POOR COUNTRIES POOR FAMILIES POOR FARMERS POOR HOUSEHOLD POOR HOUSEHOLDS POOR INDIVIDUALS POOR LIVING POOR PEOPLE POORER HOUSEHOLDS PORTFOLIO POVERTY ALLEVIATION POVERTY DYNAMICS POVERTY ERADICATION POVERTY HEADCOUNT RATES POVERTY IMPACT POVERTY INCREASE POVERTY LINE POVERTY POLICIES POVERTY RATES POVERTY REDUCTION POVERTY REDUCTION EFFORTS POVERTY REDUCTION STRATEGIES POVERTY TRAPS PRECAUTIONARY SAVINGS PRICE ELASTICITY PRICE IMPACTS PRICE INCREASE PRODUCTION PROCESS PRODUCTIVE ASSETS PROTECTION POLICIES PROTECTION SYSTEMS PUBLIC SPENDING QUALITY OF LIFE REGIONAL DIFFERENCES REGIONAL LEVEL RELATIVE PRICES REMOTE LOCATIONS RISK AVERSION RISK MANAGEMENT RISKS FROM CLIMATE CHANGE RURAL RURAL AREAS RURAL LIVELIHOODS RURAL POOR RURAL PRODUCERS RURAL WAGES SAFETY NET SAFETY NET SYSTEMS SANITATION SAVINGS SCHOOL FEES SHARE OF BENEFITS SHOCK SOCIAL CAPITAL SOCIAL POLICIES SOCIAL PROTECTION SOCIAL SAFETY NETS SOIL EROSION STORM SURGES STORMS SUBSISTENCE TARGETING TARGETING MECHANISMS TAXATION TEMPORARY SHOCKS TRANSIENT POOR TROPICAL CYCLONES UNEMPLOYMENT UNEMPLOYMENT INSURANCE UNIVERSAL HEALTH UTILITY FUNCTION VULNERABLE GROUP VULNERABLE PEOPLE VULNERABLE POPULATIONS WAGE EARNERS WATER AVAILABILITY WEATHER EXTREMES WEATHER RISKS WEATHER SHOCKS
Online Access:	http://documents.worldbank.org/curated/en/2014/11/20434357/climate-change-poverty-analytical-framework http://hdl.handle.net/10986/20639

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Summary:	Climate change and climate policies will affect poverty reduction efforts through direct and immediate impacts on the poor and by affecting factors that condition poverty reduction, such as economic growth. This paper explores this relation between climate change and policies and poverty outcomes by examining three questions: the (static) impact on poor people's livelihood and well-being; the impact on the risk for non-poor individuals to fall into poverty; and the impact on the ability of poor people to escape poverty. The paper proposes four channels that determine household consumption and through which households may escape or fall into poverty (prices, assets, productivity, and opportunities). It then discusses whether and how these channels are affected by climate change and climate policies, focusing on the exposure, vulnerability, and ability to adapt of the poor (and those vulnerable to poverty). It reviews the existing literature and offers three major conclusions. First, climate change is likely to represent a major obstacle to a sustained eradication of poverty. Second, climate policies are compatible with poverty reduction provided that (i) poverty concerns are carefully taken into account in their design and (ii) they are accompanied by the appropriate set of social policies. Third, climate change does not modify how poverty policies should be designed, but it creates greater needs and more urgency. The scale issue is explained by the fact that climate will cause more frequent and more severe shocks; the urgency, by the need to exploit the window of opportunity given to us before climate impacts are likely to substantially increase.

Climate Change and Poverty : An Analytical Framework

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