Distributional Impact Analysis of Past Climate Variability in Rural Indonesia

In rural Indonesia, around 60 percent of workers engage in agriculture and face regular climatic shocks that may threaten their crop production, household income, and human capital investments. Little is known about households ability to maintain...

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Main Authors: Korkeala, Outi, Newhouse, David, Duarte, Mafalda
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091007100749
http://hdl.handle.net/10986/4261
id okr-10986-4261
recordtype oai_dc
spelling okr-10986-42612021-04-23T14:02:16Z Distributional Impact Analysis of Past Climate Variability in Rural Indonesia Korkeala, Outi Newhouse, David Duarte, Mafalda AGRICULTURAL OUTPUT AGRICULTURAL PRODUCTIVITY AGRICULTURAL REVENUE AGRICULTURAL SECTOR AGRICULTURAL WAGES ARID TROPICS ASSET HOLDINGS AVERAGE PER CAPITA CONSUMPTION CAPITA EXPENDITURE CHILD LABOUR CLIMATE CHANGE CLIMATIC CHANGE COMMUNITY LEVEL CONSUMERS CONSUMPTION BEHAVIOR CONSUMPTION MEASURE CONSUMPTION QUINTILES CONSUMPTION SMOOTHING CREDIT MARKETS CROP PRODUCTION CROP YIELD DEVELOPMENT ECONOMICS DISTRICT-LEVEL DROUGHT DRY SEASON ECONOMIC PERSPECTIVES ECONOMIC SHOCKS FARM HOUSEHOLDS FARMERS FARMLAND FOOD AVAILABILITY FOOD ITEMS FOOD PRICES FOOD SECURITY HOUSEHOLD CHARACTERISTICS HOUSEHOLD CONSUMPTION HOUSEHOLD CONTROLS HOUSEHOLD EXPENDITURE HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD MEMBERS HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD WELFARE HOUSEHOLD-LEVEL HUMAN CAPITAL INCOME DATA INCOME SHOCKS INCOME SMOOTHING INFORMAL INSURANCE INSURANCE MARKETS IRRIGATION PER CAPITA CONSUMPTION POOR POOR HOUSEHOLD POOR HOUSEHOLDS POOR PEOPLE POOR RURAL AREAS POOR RURAL HOUSEHOLDS POVERTY REDUCTION REAL PER CAPITA CONSUMPTION REDUCTION IN CONSUMPTION REGIONAL VARIATIONS RURAL RURAL AREAS RURAL CREDIT RURAL EMPLOYMENT RURAL FARM RURAL FARMERS RURAL HOUSEHOLD RURAL HOUSEHOLDS RURAL PRICES RURAL WAGES RURAL WORKERS SAVINGS SCHOOL ATTENDANCE SCHOOLING STANDARD DEVIATION STANDARD ERRORS STATISTICAL SIGNIFICANCE SWEET POTATO TOTAL CONSUMPTION TOTAL EXPENDITURE In rural Indonesia, around 60 percent of workers engage in agriculture and face regular climatic shocks that may threaten their crop production, household income, and human capital investments. Little is known about households ability to maintain consumption in response to these shocks. This paper uses both longitudinal and repeated cross-sectional data to examine the extent to which farm profits and household consumption are reduced by delayed monsoon onset, an important determinant of rice production in Indonesia. It also investigates whether poor households are more vulnerable to delayed onset. Overall, delayed onset has minor effects on rural households profit and consumption. For poor households, defined as those with average per capita consumption in the lowest quintile, delayed onset the previous year is associated with a 13 percent decline in per capita consumption. Most of this decline is due to an increase in household size, however, and delayed onset two years ago is positively correlated with consumption. The findings suggest that poor households experience greater volatility but no lasting reduction in consumption following delayed monsoon onset. 2012-03-19T19:12:49Z 2012-03-19T19:12:49Z 2009-10-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091007100749 http://hdl.handle.net/10986/4261 English Policy Research working paper ; no. WPS 5070 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper East Asia and Pacific East Asia and Pacific Southeast Asia Asia Indonesia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic AGRICULTURAL OUTPUT
AGRICULTURAL PRODUCTIVITY
AGRICULTURAL REVENUE
AGRICULTURAL SECTOR
AGRICULTURAL WAGES
ARID TROPICS
ASSET HOLDINGS
AVERAGE PER CAPITA CONSUMPTION
CAPITA EXPENDITURE
CHILD LABOUR
CLIMATE CHANGE
CLIMATIC CHANGE
COMMUNITY LEVEL
CONSUMERS
CONSUMPTION BEHAVIOR
CONSUMPTION MEASURE
CONSUMPTION QUINTILES
CONSUMPTION SMOOTHING
CREDIT MARKETS
CROP PRODUCTION
CROP YIELD
DEVELOPMENT ECONOMICS
DISTRICT-LEVEL
DROUGHT
DRY SEASON
ECONOMIC PERSPECTIVES
ECONOMIC SHOCKS
FARM HOUSEHOLDS
FARMERS
FARMLAND
FOOD AVAILABILITY
FOOD ITEMS
FOOD PRICES
FOOD SECURITY
HOUSEHOLD CHARACTERISTICS
HOUSEHOLD CONSUMPTION
HOUSEHOLD CONTROLS
HOUSEHOLD EXPENDITURE
HOUSEHOLD HEAD
HOUSEHOLD INCOME
HOUSEHOLD MEMBERS
HOUSEHOLD SIZE
HOUSEHOLD SURVEY
HOUSEHOLD WELFARE
HOUSEHOLD-LEVEL
HUMAN CAPITAL
INCOME DATA
INCOME SHOCKS
INCOME SMOOTHING
INFORMAL INSURANCE
INSURANCE MARKETS
IRRIGATION
PER CAPITA CONSUMPTION
POOR
POOR HOUSEHOLD
POOR HOUSEHOLDS
POOR PEOPLE
POOR RURAL AREAS
POOR RURAL HOUSEHOLDS
POVERTY REDUCTION
REAL PER CAPITA CONSUMPTION
REDUCTION IN CONSUMPTION
REGIONAL VARIATIONS
RURAL
RURAL AREAS
RURAL CREDIT
RURAL EMPLOYMENT
RURAL FARM
RURAL FARMERS
RURAL HOUSEHOLD
RURAL HOUSEHOLDS
RURAL PRICES
RURAL WAGES
RURAL WORKERS
SAVINGS
SCHOOL ATTENDANCE
SCHOOLING
STANDARD DEVIATION
STANDARD ERRORS
STATISTICAL SIGNIFICANCE
SWEET POTATO
TOTAL CONSUMPTION
TOTAL EXPENDITURE
spellingShingle AGRICULTURAL OUTPUT
AGRICULTURAL PRODUCTIVITY
AGRICULTURAL REVENUE
AGRICULTURAL SECTOR
AGRICULTURAL WAGES
ARID TROPICS
ASSET HOLDINGS
AVERAGE PER CAPITA CONSUMPTION
CAPITA EXPENDITURE
CHILD LABOUR
CLIMATE CHANGE
CLIMATIC CHANGE
COMMUNITY LEVEL
CONSUMERS
CONSUMPTION BEHAVIOR
CONSUMPTION MEASURE
CONSUMPTION QUINTILES
CONSUMPTION SMOOTHING
CREDIT MARKETS
CROP PRODUCTION
CROP YIELD
DEVELOPMENT ECONOMICS
DISTRICT-LEVEL
DROUGHT
DRY SEASON
ECONOMIC PERSPECTIVES
ECONOMIC SHOCKS
FARM HOUSEHOLDS
FARMERS
FARMLAND
FOOD AVAILABILITY
FOOD ITEMS
FOOD PRICES
FOOD SECURITY
HOUSEHOLD CHARACTERISTICS
HOUSEHOLD CONSUMPTION
HOUSEHOLD CONTROLS
HOUSEHOLD EXPENDITURE
HOUSEHOLD HEAD
HOUSEHOLD INCOME
HOUSEHOLD MEMBERS
HOUSEHOLD SIZE
HOUSEHOLD SURVEY
HOUSEHOLD WELFARE
HOUSEHOLD-LEVEL
HUMAN CAPITAL
INCOME DATA
INCOME SHOCKS
INCOME SMOOTHING
INFORMAL INSURANCE
INSURANCE MARKETS
IRRIGATION
PER CAPITA CONSUMPTION
POOR
POOR HOUSEHOLD
POOR HOUSEHOLDS
POOR PEOPLE
POOR RURAL AREAS
POOR RURAL HOUSEHOLDS
POVERTY REDUCTION
REAL PER CAPITA CONSUMPTION
REDUCTION IN CONSUMPTION
REGIONAL VARIATIONS
RURAL
RURAL AREAS
RURAL CREDIT
RURAL EMPLOYMENT
RURAL FARM
RURAL FARMERS
RURAL HOUSEHOLD
RURAL HOUSEHOLDS
RURAL PRICES
RURAL WAGES
RURAL WORKERS
SAVINGS
SCHOOL ATTENDANCE
SCHOOLING
STANDARD DEVIATION
STANDARD ERRORS
STATISTICAL SIGNIFICANCE
SWEET POTATO
TOTAL CONSUMPTION
TOTAL EXPENDITURE
Korkeala, Outi
Newhouse, David
Duarte, Mafalda
Distributional Impact Analysis of Past Climate Variability in Rural Indonesia
geographic_facet East Asia and Pacific
East Asia and Pacific
Southeast Asia
Asia
Indonesia
relation Policy Research working paper ; no. WPS 5070
description In rural Indonesia, around 60 percent of workers engage in agriculture and face regular climatic shocks that may threaten their crop production, household income, and human capital investments. Little is known about households ability to maintain consumption in response to these shocks. This paper uses both longitudinal and repeated cross-sectional data to examine the extent to which farm profits and household consumption are reduced by delayed monsoon onset, an important determinant of rice production in Indonesia. It also investigates whether poor households are more vulnerable to delayed onset. Overall, delayed onset has minor effects on rural households profit and consumption. For poor households, defined as those with average per capita consumption in the lowest quintile, delayed onset the previous year is associated with a 13 percent decline in per capita consumption. Most of this decline is due to an increase in household size, however, and delayed onset two years ago is positively correlated with consumption. The findings suggest that poor households experience greater volatility but no lasting reduction in consumption following delayed monsoon onset.
format Publications & Research :: Policy Research Working Paper
author Korkeala, Outi
Newhouse, David
Duarte, Mafalda
author_facet Korkeala, Outi
Newhouse, David
Duarte, Mafalda
author_sort Korkeala, Outi
title Distributional Impact Analysis of Past Climate Variability in Rural Indonesia
title_short Distributional Impact Analysis of Past Climate Variability in Rural Indonesia
title_full Distributional Impact Analysis of Past Climate Variability in Rural Indonesia
title_fullStr Distributional Impact Analysis of Past Climate Variability in Rural Indonesia
title_full_unstemmed Distributional Impact Analysis of Past Climate Variability in Rural Indonesia
title_sort distributional impact analysis of past climate variability in rural indonesia
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091007100749
http://hdl.handle.net/10986/4261
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