Poverty and Climate

Change: Introduction
Stephane Hallegatte, Marianne Fay, and Edward B. Barbier

Kharisma Adzra Hafilla

18/425604/SV/14746
Yoan Faralin Nugroho
18/425621/SV/14763
Abstract
The assets and income of poor people
represent such a small share of
national wealth, the impacts of climate
change on poor people will be largely
invisible in aggregate economic
statistics.
This introduction summarizes approach and
findings, which support the idea that the
link between poverty and climate
vulnerability goes both ways:
1) Poverty is one major driver of people’s
vulnerability to climate – related
shocks and stressors.
2) The vulnerability is keeping people in
poverty.
 The Impacts of Climate
Change: Should We Focus on
Poverty Instead of GDP?
GDP is an approach that does not capture the
full impact of climate change on people’s
well-being. Such estimate do not reflect
distributional impact and especially how
climate change may affect the poorest people
and poverty.
Not only countries or region, climate change
impacts on occupations and income classes.

Poor people (low income people) have fewer resources to fall

back upon and lower adaptive capacity. But because their
asset and income represent such a small share of national
wealth, poor people losses, even if dramatic, are largely
invisible in GDP.

”
The Dynamics of Poverty
“Poverty is not static and poverty reduction is not monotonic,
one way process.”

Climate change can affect the flow of people falling into

poverty. Many shocks that push people into poverty are
directly or indirectly related to the environment and
climate.
Climate change can also affect the flow of
people escaping poverty
Lower income
due to Assets
Reduce poverty
Natural disaster agricultural accumulation
reduction
productivity slow down
and assets losses

If the assets of the poor are more exposed or

vulnerable than the assets of richer individuals, climate
change may increase inequality, so it will disconnect
the impact of growth and will be resulted in a large
impact on poverty.
 Poor People are More
Exposed to Environmental
Shocks and Stressors
In “Climate Exposure, Vulnerability and Environmental
When
Reliance:facing a shock,
A Cross-Section non-poor
Analysis people
of Structural and are
more likely
Stochastic to harvest
Poverty”, moreand
Arild Angelsen environmental
Therese Dokken
products (19%),
create 4 categories compared with the
of households:
structurally poor
o Income & asset poorindividuals (11%)
(structurally poor)
o Income rich & asset poor (stochastically non-poor)
o Income poor & asset rich (stochastically poor)
At least in
o Income dry rich
& asset regions, the poorest
(structurally non-poor) also
experience the highest forest loss. The income poor are found to be more
exposed to extreme climate conditions
(live in dryer and hotter) villages in the
Angelsen and Dokken (2018) also suggest that the
dry forest zones, in wetter villages in the
ability of poor people to and
wet zones, cope with future
experience shocks
larger rainfall
(including climate-related
fluctuations. ones) may be diminishing.
 Poor People are Often More
Exposed to Natural Hazards, and
are More Vulnerable to Their
Impacts
Winsemius et al. (2018) find that poor people are often
disproportionally exposed to floods and droughts, particularly in
urban areas.
Hallegatte et al., 2017, reviews dozens of case studies
In most showing
countries that
In addition, poor poverty
(22 out people increases after
aresignificant
of 30 with always natural
more disasters,
vulnerable
result), poor when
urban households
a and
disaster are
estimates more
strikes. exposed
that,
In on
the to floods
average,
small 26than
number the
million people are
of surveys that
average urban population.
falling into
compare assetpoverty every year
and income dueof
losses topoor
natural
anddisasters,
non-poor
people
Park et especially
after
al. (2018) relatively
floods
find that, in 37and
out offrequent
storms, floods
poor
51 countries, and drought
people
poor peoplelose a larger
are more exposed
to high temperature than the average. And countries with a concentration of poor
people in hotter regions are mostly alreadyshare.
warm climate countries, where higher
temperature is undesirable (as expected, poor people are often living in the colder
regions of cold countries).
From Poverty to Vulnerability? Or From
Vulnerability to Poverty? Correlation and
Causality
 Indeed, the causality is likely to run both ways. People may be
unable to escape poverty in a sustainable way because they are
affected by shocks that make it more difficult to accumulate
assets. But poor people are more constrained in terms of where
they live and which occupation they have, and they are
therefore more likely to live in less–desirable locations and
have less–desirable jobs and occupations. And poor people
have fewer resources to call upon to protect themselves.
 Climate is Likely to Affect
Poverty Through Many Channels
Food Security
Health Impact
Mobility
For instance,
Migration
Health poor
plays
shocks people
a key
affect rolespend
in theathrough
households larger share
ability poorofchannels:
ofmany their budget
households on foodimpact
thetodirect
escape than the
povertyonbyrest
of the population:
capturing
well-being; 62 perfor
opportunities
consequences cent on average
of better
death jobs, compared
higher
of a family to 44loss
pay, and
member; perofcent
improved for non-poor
access
income to a
when
people.
services
memberand education.
cannot work; expenses in care and drugs, especially in the absence of
health insurance; and time and resources spent for caregiving.
For foodchange
Climate producers,
may an increase
trigger moreinmigration,
food pricesfor
is instance
not necessarily a bad outcome.
if opportunities
The final because
disappear
Healthcare impacts will
of
payments depend
climate
send on100
howbut
impacts
about changes in prices
may people
million also intoand
impair productivity
migration,
poverty everyfor balance
year
(an increase
example
(WHO, in food
through
2008) prices due
increased to reduced
conflict productivity does not automatically lead
and exclusion.
to increased revenues) and on how increased revenues are distributed among farm
workers and landowners.
What About Future
Vulnerability?
 Climate change is a long-term process, and most of its impacts
will be felt in the decades to come, and even longer. The
vulnerability of populations will change over time, in response to
technological changes and socioeconomic trends, such as poverty
reduction and economic growth, and factors that are only partially
related to climate change (for instance, the health of ecosystems,
which also depends on local policies and practices).
Thanks!
Any questions?