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Three Essays on Economic Evaluation of Responses to Weather-induced Risks in Uganda

Three Essays on Economic Evaluation of Responses to Weather-induced Risks in Uganda PDF Author: Florence Lwiza
Publisher:
ISBN:
Category :
Languages : en
Pages :

Book Description
In Uganda, the past five decades have been characterized by increasing temperatures, longer dry seasons, changes in the timing of rainfall with extreme events such as floods and heavy rainstorms, all of which have adverse effects on the livelihood of the rural farming community. Several strategies have been recommended for adaptation and mitigation of negative effects arising from changing weather conditions, including migration, use of weather index insurance, and changes in farm production practices, among others. However, the usability and effectiveness of the strategies are influenced by economic, social, biophysical and farmers' behavioral factors that are examined in the three essays of this study. Given the importance of weather and labor to rural and agricultural-based economies, the first essay examines the effect of weather anomalies on the likelihood that workers migrate from rural and urban areas. By matching household survey data with weather data, and assuming exogeneity of weather variables, the effects are identified by exploiting the spatial heterogeneity of weather conditions and worker characteristics. The results remain robust to alternative model specifications, all of which show a nonlinear effect of weather anomalies on the likelihood of migration of workers from rural areas. The results show that precipitation extremes reduce the likelihood of labor migration whereas temperature extremes increase the likelihood of labor migration. This research contributes to the burgeoning literature on weather-induced migration, and the findings underscore the need to build resilience for workers. The second essay analyzes the critical temperature for coffee yield reduction and whether the effects for single-cropped coffee farms differ from those that are intercropped with bananas as shade plants. Using panel data for coffee production and weather, I exploit the spatial and temporal variations in temperature and precipitation to estimate the effects. Estimation of random-effects regression models shows a nonlinear effect of temperature and precipitation on the yield for coffee with extreme temperatures greater than 28°C resulting in yield reductions. A sensitivity analysis predicts that increases in temperature results in reductions in yield, but the reductions are less for coffee farms that are intercropped with bananas. The findings can be used to inform policy decisions and research to design interventions that reduce production risks arising from weather changes. The third essay analyzes factors that affect the adoption and renewal of weather index-based insurance contracts. It also examines farmer preferences for attributes and types of index insurance contracts. Given that the use of index insurance is relatively new in Uganda and the market is not yet well developed, the study makes use of data collected through choice laboratory experiments conducted in simulated insurance markets in Western and Central Uganda. Discrete choice models were used to analyze the data and the results showed that the ambiguity of insurance contracts reduces the likelihood of the adoption of insurance. The results also show that farmers have a higher preference for insurance offered through farmer groups, as opposed to insurance offered to individuals. The study contributes to the literature on behavioral and product-specific factors that affect the adoption of index-based insurance.

Three Essays on Economic Evaluation of Responses to Weather-induced Risks in Uganda

Three Essays on Economic Evaluation of Responses to Weather-induced Risks in Uganda PDF Author: Florence Lwiza
Publisher:
ISBN:
Category :
Languages : en
Pages :

Book Description
In Uganda, the past five decades have been characterized by increasing temperatures, longer dry seasons, changes in the timing of rainfall with extreme events such as floods and heavy rainstorms, all of which have adverse effects on the livelihood of the rural farming community. Several strategies have been recommended for adaptation and mitigation of negative effects arising from changing weather conditions, including migration, use of weather index insurance, and changes in farm production practices, among others. However, the usability and effectiveness of the strategies are influenced by economic, social, biophysical and farmers' behavioral factors that are examined in the three essays of this study. Given the importance of weather and labor to rural and agricultural-based economies, the first essay examines the effect of weather anomalies on the likelihood that workers migrate from rural and urban areas. By matching household survey data with weather data, and assuming exogeneity of weather variables, the effects are identified by exploiting the spatial heterogeneity of weather conditions and worker characteristics. The results remain robust to alternative model specifications, all of which show a nonlinear effect of weather anomalies on the likelihood of migration of workers from rural areas. The results show that precipitation extremes reduce the likelihood of labor migration whereas temperature extremes increase the likelihood of labor migration. This research contributes to the burgeoning literature on weather-induced migration, and the findings underscore the need to build resilience for workers. The second essay analyzes the critical temperature for coffee yield reduction and whether the effects for single-cropped coffee farms differ from those that are intercropped with bananas as shade plants. Using panel data for coffee production and weather, I exploit the spatial and temporal variations in temperature and precipitation to estimate the effects. Estimation of random-effects regression models shows a nonlinear effect of temperature and precipitation on the yield for coffee with extreme temperatures greater than 28°C resulting in yield reductions. A sensitivity analysis predicts that increases in temperature results in reductions in yield, but the reductions are less for coffee farms that are intercropped with bananas. The findings can be used to inform policy decisions and research to design interventions that reduce production risks arising from weather changes. The third essay analyzes factors that affect the adoption and renewal of weather index-based insurance contracts. It also examines farmer preferences for attributes and types of index insurance contracts. Given that the use of index insurance is relatively new in Uganda and the market is not yet well developed, the study makes use of data collected through choice laboratory experiments conducted in simulated insurance markets in Western and Central Uganda. Discrete choice models were used to analyze the data and the results showed that the ambiguity of insurance contracts reduces the likelihood of the adoption of insurance. The results also show that farmers have a higher preference for insurance offered through farmer groups, as opposed to insurance offered to individuals. The study contributes to the literature on behavioral and product-specific factors that affect the adoption of index-based insurance.

Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation

Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation PDF Author: Intergovernmental Panel on Climate Change
Publisher: Cambridge University Press
ISBN: 1107025060
Category : Business & Economics
Languages : en
Pages : 593

Book Description
Extreme weather and climate events, interacting with exposed and vulnerable human and natural systems, can lead to disasters. This Special Report explores the social as well as physical dimensions of weather- and climate-related disasters, considering opportunities for managing risks at local to international scales. SREX was approved and accepted by the Intergovernmental Panel on Climate Change (IPCC) on 18 November 2011 in Kampala, Uganda.

Shock Waves

Shock Waves PDF Author: Stephane Hallegatte
Publisher: World Bank Publications
ISBN: 1464806748
Category : Business & Economics
Languages : en
Pages : 227

Book Description
Ending poverty and stabilizing climate change will be two unprecedented global achievements and two major steps toward sustainable development. But the two objectives cannot be considered in isolation: they need to be jointly tackled through an integrated strategy. This report brings together those two objectives and explores how they can more easily be achieved if considered together. It examines the potential impact of climate change and climate policies on poverty reduction. It also provides guidance on how to create a “win-win†? situation so that climate change policies contribute to poverty reduction and poverty-reduction policies contribute to climate change mitigation and resilience building. The key finding of the report is that climate change represents a significant obstacle to the sustained eradication of poverty, but future impacts on poverty are determined by policy choices: rapid, inclusive, and climate-informed development can prevent most short-term impacts whereas immediate pro-poor, emissions-reduction policies can drastically limit long-term ones.

Unbreakable

Unbreakable PDF Author: Stephane Hallegatte
Publisher: World Bank Publications
ISBN: 1464810044
Category : Nature
Languages : en
Pages : 380

Book Description
'Economic losses from natural disasters totaled $92 billion in 2015.' Such statements, all too commonplace, assess the severity of disasters by no other measure than the damage inflicted on buildings, infrastructure, and agricultural production. But $1 in losses does not mean the same thing to a rich person that it does to a poor person; the gravity of a $92 billion loss depends on who experiences it. By focusing on aggregate losses—the traditional approach to disaster risk—we restrict our consideration to how disasters affect those wealthy enough to have assets to lose in the first place, and largely ignore the plight of poor people. This report moves beyond asset and production losses and shifts its attention to how natural disasters affect people’s well-being. Disasters are far greater threats to well-being than traditional estimates suggest. This approach provides a more nuanced view of natural disasters than usual reporting, and a perspective that takes fuller account of poor people’s vulnerabilities. Poor people suffer only a fraction of economic losses caused by disasters, but they bear the brunt of their consequences. Understanding the disproportionate vulnerability of poor people also makes the case for setting new intervention priorities to lessen the impact of natural disasters on the world’s poor, such as expanding financial inclusion, disaster risk and health insurance, social protection and adaptive safety nets, contingent finance and reserve funds, and universal access to early warning systems. Efforts to reduce disaster risk and poverty go hand in hand. Because disasters impoverish so many, disaster risk management is inseparable from poverty reduction policy, and vice versa. As climate change magnifies natural hazards, and because protection infrastructure alone cannot eliminate risk, a more resilient population has never been more critical to breaking the cycle of disaster-induced poverty.

The Regional Impacts of Climate Change

The Regional Impacts of Climate Change PDF Author: Intergovernmental Panel on Climate Change. Working Group II.
Publisher: Cambridge University Press
ISBN: 9780521634557
Category : Science
Languages : en
Pages : 532

Book Description
Cambridge, UK : Cambridge University Press, 1998.

America's Climate Choices

America's Climate Choices PDF Author: National Research Council
Publisher: National Academies Press
ISBN: 0309145856
Category : Science
Languages : en
Pages : 134

Book Description
Climate change is occurring. It is very likely caused by the emission of greenhouse gases from human activities, and poses significant risks for a range of human and natural systems. And these emissions continue to increase, which will result in further change and greater risks. America's Climate Choices makes the case that the environmental, economic, and humanitarian risks posed by climate change indicate a pressing need for substantial action now to limit the magnitude of climate change and to prepare for adapting to its impacts. Although there is some uncertainty about future risk, acting now will reduce the risks posed by climate change and the pressure to make larger, more rapid, and potentially more expensive reductions later. Most actions taken to reduce vulnerability to climate change impacts are common sense investments that will offer protection against natural climate variations and extreme events. In addition, crucial investment decisions made now about equipment and infrastructure can "lock in" commitments to greenhouse gas emissions for decades to come. Finally, while it may be possible to scale back or reverse many responses to climate change, it is difficult or impossible to "undo" climate change, once manifested. Current efforts of local, state, and private-sector actors are important, but not likely to yield progress comparable to what could be achieved with the addition of strong federal policies that establish coherent national goals and incentives, and that promote strong U.S. engagement in international-level response efforts. The inherent complexities and uncertainties of climate change are best met by applying an iterative risk management framework and making efforts to significantly reduce greenhouse gas emissions; prepare for adapting to impacts; invest in scientific research, technology development, and information systems; and facilitate engagement between scientific and technical experts and the many types of stakeholders making America's climate choices.

Climate Change and Indigenous Peoples in the United States

Climate Change and Indigenous Peoples in the United States PDF Author: Julie Koppel Maldonado
Publisher: Springer
ISBN: 3319052667
Category : Science
Languages : en
Pages : 178

Book Description
With a long history and deep connection to the Earth’s resources, indigenous peoples have an intimate understanding and ability to observe the impacts linked to climate change. Traditional ecological knowledge and tribal experience play a key role in developing future scientific solutions for adaptation to the impacts. The book explores climate-related issues for indigenous communities in the United States, including loss of traditional knowledge, forests and ecosystems, food security and traditional foods, as well as water, Arctic sea ice loss, permafrost thaw and relocation. The book also highlights how tribal communities and programs are responding to the changing environments. Fifty authors from tribal communities, academia, government agencies and NGOs contributed to the book. Previously published in Climatic Change, Volume 120, Issue 3, 2013.

Global Trends 2040

Global Trends 2040 PDF Author: National Intelligence Council
Publisher: Cosimo Reports
ISBN: 9781646794973
Category :
Languages : en
Pages : 158

Book Description
"The ongoing COVID-19 pandemic marks the most significant, singular global disruption since World War II, with health, economic, political, and security implications that will ripple for years to come." -Global Trends 2040 (2021) Global Trends 2040-A More Contested World (2021), released by the US National Intelligence Council, is the latest report in its series of reports starting in 1997 about megatrends and the world's future. This report, strongly influenced by the COVID-19 pandemic, paints a bleak picture of the future and describes a contested, fragmented and turbulent world. It specifically discusses the four main trends that will shape tomorrow's world: - Demographics-by 2040, 1.4 billion people will be added mostly in Africa and South Asia. - Economics-increased government debt and concentrated economic power will escalate problems for the poor and middleclass. - Climate-a hotter world will increase water, food, and health insecurity. - Technology-the emergence of new technologies could both solve and cause problems for human life. Students of trends, policymakers, entrepreneurs, academics, journalists and anyone eager for a glimpse into the next decades, will find this report, with colored graphs, essential reading.

Climate Change and Water

Climate Change and Water PDF Author: Intergovernmental Panel on Climate Change / Working Group Technical Support Unit
Publisher:
ISBN: 9789291691234
Category : Climatic changes
Languages : en
Pages : 200

Book Description
The Technical Paper addresses the issue of freshwater. Sealevel rise is dealt with only insofar as it can lead to impacts on freshwater in coastal areas and beyond. Climate, freshwater, biophysical and socio-economic systems are interconnected in complex ways. Hence, a change in any one of these can induce a change in any other. Freshwater-related issues are critical in determining key regional and sectoral vulnerabilities. Therefore, the relationship between climate change and freshwater resources is of primary concern to human society and also has implications for all living species. -- page vii.

The impact of disasters and crises on agriculture and food security: 2021

The impact of disasters and crises on agriculture and food security: 2021 PDF Author: Food and Agriculture Organization of the United Nations
Publisher: Food & Agriculture Org.
ISBN: 9251340714
Category : Nature
Languages : en
Pages : 245

Book Description
On top of a decade of exacerbated disaster loss, exceptional global heat, retreating ice and rising sea levels, humanity and our food security face a range of new and unprecedented hazards, such as megafires, extreme weather events, desert locust swarms of magnitudes previously unseen, and the COVID-19 pandemic. Agriculture underpins the livelihoods of over 2.5 billion people – most of them in low-income developing countries – and remains a key driver of development. At no other point in history has agriculture been faced with such an array of familiar and unfamiliar risks, interacting in a hyperconnected world and a precipitously changing landscape. And agriculture continues to absorb a disproportionate share of the damage and loss wrought by disasters. Their growing frequency and intensity, along with the systemic nature of risk, are upending people’s lives, devastating livelihoods, and jeopardizing our entire food system. This report makes a powerful case for investing in resilience and disaster risk reduction – especially data gathering and analysis for evidence informed action – to ensure agriculture’s crucial role in achieving the future we want.