Welfare Impacts of Climate Shocks: Evidence from Uganda

Type Working Paper
Title Welfare Impacts of Climate Shocks: Evidence from Uganda
Publication (Day/Month/Year) 2015
URL http://ageconsearch.umn.edu/bitstream/229060/2/Asfaw-Uganda Contributed Papers - ICAE 2015-final.pdf
This paper evaluates the effects of weather/climate shocks on household welfare using a nationally
representative panel data from Uganda together with a set of novel climate variation indicators.
Where the effect of climate/weather variability has a significantly negative effect on household
welfare, we further test the hypotheses that policy-relevant mechanisms can be effective means of
mitigating the negative welfare effects. In general we obtain very few significant results with
respect to climate/weather shock variables which might point towards a consumption and income
smoothing behavior by the households, whose welfare level is not affected by the weather shocks.
With regards to the different shocks definition, the reference period used to define the shock does
not matter since the coefficients and the signs do not change with the reference period. Different
policy action variables have also heterogeneous impact across different outcome variables in terms
of mitigating the negative impact of climate/weather shocks.

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