Climate Change and Poverty -- an Analytical Framework

49 Pages Posted: 20 Apr 2016

See all articles by S. Hallegatte

S. Hallegatte

World Bank

Mook Bangalore

affiliation not provided to SSRN

Laura Bonzanigo

World Bank - Office of the Chief Economist

Marianne Fay

World Bank

Ulf Narloch

affiliation not provided to SSRN

Julie Rozenberg

CIRED, International Research Center on Environment & Development, France

Adrien Vogt-Schilb

CIRED, Centre international de recherche sur l’environnement et le développement

Date Written: November 1, 2014

Abstract

Climate change and climate policies will affect poverty reduction efforts through direct and immediate impacts on the poor and by affecting factors that condition poverty reduction, such as economic growth. This paper explores this relation between climate change and policies and poverty outcomes by examining three questions: the (static) impact on poor people's livelihood and well-being; the impact on the risk for non-poor individuals to fall into poverty; and the impact on the ability of poor people to escape poverty. The paper proposes four channels that determine household consumption and through which households may escape or fall into poverty (prices, assets, productivity, and opportunities). It then discusses whether and how these channels are affected by climate change and climate policies, focusing on the exposure, vulnerability, and ability to adapt of the poor (and those vulnerable to poverty). It reviews the existing literature and offers three major conclusions. First, climate change is likely to represent a major obstacle to a sustained eradication of poverty. Second, climate policies are compatible with poverty reduction provided that (i) poverty concerns are carefully taken into account in their design and (ii) they are accompanied by the appropriate set of social policies. Third, climate change does not modify how poverty policies should be designed, but it creates greater needs and more urgency. The scale issue is explained by the fact that climate will cause more frequent and more severe shocks; the urgency, by the need to exploit the window of opportunity given to us before climate impacts are likely to substantially increase.

Keywords: Social Protections & Assistance, Global Environment, Economic Theory & Research, Economic Growth, Climate Change and Environment, Industrial Economics, Climate Change and Health, Science of Climate Change, Inequality

Suggested Citation

Hallegatte, Stephane and Bangalore, Mook and Bonzanigo, Laura and Fay, Marianne and Narloch, Ulf and Rozenberg, Julie and Vogt-Schilb, Adrien, Climate Change and Poverty -- an Analytical Framework (November 1, 2014). World Bank Policy Research Working Paper No. 7126. Available at SSRN: https://ssrn.com/abstract=2531160

Stephane Hallegatte (Contact Author)

World Bank ( email )

1818 H Street NW
Washington, DC 20433
United States

Mook Bangalore

affiliation not provided to SSRN

No Address Available

Laura Bonzanigo

World Bank - Office of the Chief Economist ( email )

Washington, DC 20433
United States

Marianne Fay

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Ulf Narloch

affiliation not provided to SSRN

No Address Available

Julie Rozenberg

CIRED, International Research Center on Environment & Development, France ( email )

Campus du Jardin Tropical
45 bis avenue de la Belle Gabrielle
F94736 Nogent sur Marne Cedex
France

Adrien Vogt-Schilb

CIRED, Centre international de recherche sur l’environnement et le développement ( email )

France

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