The effects of drought on inequality: evidence from rural Mozambique
Lukas Mogge1, Kati Kraehnert2
1Potsdam Institute for Climate Impact Research, Research Department 2: Climate Resilience, Germany
This study analyses the distributional effects of an extreme weather event among poor rural households. Climate change increases the frequency and intensity of extreme weather events and climate shocks, causing adverse economic effects for many households worldwide. Low- and middle-income countries are disproportionally more affected when considering damages relative to GDP. While pointing to an important geographic inequality, such cross-country studies do not help us to understand the effect of climate change on the poor since society’s poorest members contribute little to macroeconomic indicators. The effects of climate risks are unlikely to be equally distributed within a given country. Poor households tend to be geographically more exposed to climate risk, own assets that are more susceptibility to damage, while also being less able to cope with losses. Furthermore, affected lower-income households might lack the resources to sustain their livelihoods, potentially trapping them in poverty in the long term. Thus, understanding the within-country distributional effects of climate change is central for national level policy targeted at different groups within the country.
Keywords: Climate change, extreme weather event, household analysis, inequality, Mozambique, panel analysis
Contact Address: Lukas Mogge, Potsdam Institute for Climate Impact Research, Research Department 2: Climate Resilience, P.O. Box 60 12 03, 14412 Potsdam, Germany, e-mail: moggepik-potsdam.de