Environmental Reliance, Climate Exposure, and Vulnerability : A Cross-Section Analysis of Structural and Stochastic Poverty

This paper analyzes environmental reliance, poverty, and climate vulnerability among more than 7,300 households in forest adjacent communities in 24 developing countries. The data are from the detailed, quarterly income recording done by the Povert...

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Bibliographic Details
Main Authors:	Angelsen, Arild, Dokken, Therese
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2015
Subjects:	HOUSEHOLD INCOMES IMPACTS OF CLIMATE CHANGE FEMALE EDUCATION HOUSEHOLD SIZE INCOME FLUCTUATIONS UNCERTAINTIES POVERTY LINE CLIMATE CHANGE VULNERABILITY INCOME POVERTY FOOD CONSUMPTION INCOME EMPLOYMENT OPPORTUNITIES CLIMATES DEATH PORTFOLIO RURAL LIVELIHOODS HOUSEHOLD POVERTY WELFARE PUBLIC INFRASTRUCTURE POOR PEOPLE MODELS CLIMATE SCENARIOS PRICE MONETARY VALUE GLOBAL POVERTY LIVESTOCK INCOME CROP VARIETIES RURAL POPULATION ASSET HOLDINGS MEASURES EXTREME WEATHER SAFETY NETS POVERTY REDUCTION COPING STRATEGIES CROP YIELD VULNERABLE GROUP SAVINGS CROP PRODUCTION SCENARIOS RURAL HOUSEHOLDS DEVELOPMENT ECONOMICS ECONOMIC RECESSION HOUSEHOLD HEAD LIVELIHOOD OPPORTUNITIES POOR HOUSEHOLD RURAL INCOME INCOME SHOCK VULNERABLE HOUSEHOLDS MARKETS HOUSEHOLD INCOME POVERTY STATUS CHRONIC POVERTY HOUSEHOLD SURVEYS HUMAN CAPITAL ASSETS SOCIAL PROTECTION CLIMATE CHANGE INCOME RISK FARMERS RURAL WAGES ENVIRONMENTAL ECONOMICS COVARIATE SHOCKS FOOD PRODUCTION FOOD BUYERS LAND USE CLIMATE VARIABILITY WAGE WORK CROP YIELDS HOUSEHOLD LEVEL POVERTY LINES CONSUMPTION HUMAN CAPITAL FOOD SECURITY POLICIES DROUGHT SCHOOL FEES FINANCIAL CAPITAL MARKET PRICES VALUE INCOME SHOCKS POLICY MAKERS EXTREME EVENTS PURCHASING POWER ECONOMIC SECTORS CLIMATE HOUSEHOLD‐LEVEL SAFETY NET RURAL POVERTY PRODUCTIVE ASSETS IMPACT OF SHOCKS AGRICULTURAL LAND HOUSEHOLD HEAD AGE RURAL NEGATIVE INCOME SHOCK CLIMATE CHANGES MARKET ACCESS TO MARKETS POLICY SOCIAL CAPITAL HUMAN HEALTH TARGETING MACROECONOMIC SHOCKS AGRICULTURAL PRODUCTS CLIMATIC CHANGE CLIMATE CHANGE SCENARIOS INCOME SHARES FARM SELF-EMPLOYMENT RURAL AREAS POVERTY CLIMATE EXTREMES POLICY RELEVANCE POLICY IMPLICATIONS HOUSEHOLD CONSUMPTION RISK MANAGEMENT POVERTY DYNAMICS HOUSEHOLD WELFARE POOR EXTREME WEATHER EVENTS ECOLOGICAL ECONOMICS POOR MARKET ACCESS SHOCK FOOD PRICES INCOME LOSS ECONOMIC SHOCKS INCOME LOSSES CROP INCOME PRICES POVERTY ANALYSIS BENEFITS LAND ECONOMICS POOR HOUSEHOLDS
Online Access:	http://documents.worldbank.org/curated/en/2015/11/25249890/environmental-reliance-climate-exposure-vulnerability-cross-section-analysis-structural-stochastic-poverty http://hdl.handle.net/10986/23444

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Summary:	This paper analyzes environmental reliance, poverty, and climate vulnerability among more than 7,300 households in forest adjacent communities in 24 developing countries. The data are from the detailed, quarterly income recording done by the Poverty Environment Network project. Observed income is combined with predicted income (based on households’ assets and other characteristics) to create four categories of households: income and asset poor (structurally poor), income rich and asset poor (stochastically non-poor), income poor and asset rich (stochastically poor), and income and asset rich (structurally non-poor). The income and asset poor generate 29 percent of their income from environmental resources, more than the other three categories. The income poor are more exposed to extreme and variable climate conditions. They tend to live in dryer (and hotter) villages in the dry forest zones, in wetter villages in the wet zones, and experience larger rainfall fluctuations. Among the self-reported income-generating responses to income shocks, extracting more environmental resources ranks second to seeking wage labor. Given high reliance on forest and other environmental resources, a concerning finding is that, in the Africa subsample (dominated by dry forests), the rate of forest loss is more than four times higher for the income asset poor compared with the income asset rich. Special attention should be given to the poorest households in dry areas, predominantly in Africa. They are (already) exposed to more extreme climate conditions, they suffer the highest forest loss, and the forest benefits are at risk in global warming scenarios.

Environmental Reliance, Climate Exposure, and Vulnerability : A Cross-Section Analysis of Structural and Stochastic Poverty

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