This paper examines the impact of climate change on poor households across South Africa who practice subsistence farming to supplement their household income and dietary requirements. We consider three production systems: specialized crops, livestock and mixed crop-livestock farming.
On 31 March, the Intergovernmental Panel on Climate Change (IPCC) released its latest report on the impacts of climate change on humans and ecosystems (see go.nature.com/ad5v1b). These are real risks that need to be accounted for in planning for adaptation and mitigation. Pricing the risks with integrated models of physics and economics lets their costs be compared to those of limiting climate change or investing in greater resilience.
Although the financial and economic crises have diverted attention from global and local environmental threats and natural resources management issues in developing and developed economies, environment and development concerns must remain on the agendas. The IPCC just released the Working Group I contribution to the IPCC 5th Assessment Report, which will focus World’s attention on topics such as the impact of climate change and the possible mitigation and adaptation options. This report follows the June 2012 United Nations Conference on Sustainable Development held in Rio.
This study investigates the impact of climate change adaptation on farm households’ downside risk exposure in the Nile Basin of Ethiopia. The analysis relies on a moment-based specification of the stochastic production function. We use an empirical strategy that accounts for the heterogeneity in the decision on whether to adapt or not, and for unobservable characteristics of farmers and their farm.
The introduction of a price on CO2 is expected to be more efficient than prescriptive regulation. It also instantiates substantial economic value. Initially, programs allocated this value to incumbent firms (grandfathering), but the growing movement toward auctioning or emissions fees makes carbon revenues into a payment for environmental services. This paper asks to whom should this payment accrue?
Voluntary agreements (VAs) negotiated between environmental regulators and polluters are increasingly popular in developing countries. According to proponents, they can sidestep weak institutions and other pervasive barriers to conventional mandatory regulation in such countries. Yet little is known about the drivers of their use and their effectiveness in poor countries. The considerable literature on voluntary initiatives in industrialized countries, where both VAs and socioeconomic conditions differ, may not apply.
Uncertainty about the future is an important determinant of well-being, especially in developing countries where financial markets and other market failures result in ineffective insurance mechanisms. However, separating the effects of future uncertainty from realised events, and then measuring the impact of uncertainty on utility, presents a number of empirical challenges.
We estimate the effect of hydro-meteorological emergencies on internal migration in Costa Rica between 1995 and 2000. Nationwide, we find that an increase of one emergency in a canton significantly increases average migration rates from that canton, after controlling for several social, economic, climatic and demographic factors in both the canton of origin and destination.
