Climate impacts on material wealth inequality: global evidence from a subnational dataset

Pardy, Martina, Riom, Capucine and Hoffmann, Roman (2024) Climate impacts on material wealth inequality: global evidence from a subnational dataset. Geography and Environment Discussion Paper Series (48). Department of Geography and Environment, The London School of Economics and Political Science, London, UK.

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Abstract

Worsening climatic conditions are a significant threat to livelihoods, health and well-being worldwide. In this paper, we estimate the impact of temperature and precipitation anomalies on inequality and poverty using a dataset combining comprehensive climatological data with subnational regional wealth and inequality measures derived from the Demographic and Health Surveys for 52 countries and 453 regions. Using the International Wealth Index as a comparative measure of material wealth, we find a significant impact of temperature anomalies on the distribution of material wealth. We estimate that an average temperature anomaly of one standard deviation in the past 4 years increases the regional Gini coefficient by 0.018 points and increases the share of extremely poor households by 4.1 percent. The impacts are stronger in rural areas. We find that temperature anomalies affect inequality through multiple channels, including agricultural employment, the deterioration of assets, decreased economic activity, higher unemployment and worsened access to healthcare. The impacts of precipitation anomalies on inequality, on the other hand, are more ambiguous.

Item Type:	Monograph (Discussion Paper)
Official URL:	https://www.lse.ac.uk/geography-and-environment/re...
Divisions:	Geography & Environment Middle East Centre International Inequalities Institute
Subjects:	H Social Sciences > HC Economic History and Conditions G Geography. Anthropology. Recreation > GE Environmental Sciences
JEL classification:	Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q56 - Environment and Development; Environment and Trade; Sustainability; Environmental Accounting; Environmental Equity I - Health, Education, and Welfare > I3 - Welfare and Poverty > I31 - General Welfare; Basic Needs; Living Standards; Quality of Life; Happiness R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, and Changes
Date Deposited:	18 Sep 2024 11:30
Last Modified:	20 Dec 2024 00:23
URI:	http://eprints.lse.ac.uk/id/eprint/125447

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