Households and Heat Stress : Estimating the Distributional Consequences of Climate Change
Recent economic research documents a range of adverse welfare consequences from extreme heat stress, including health, labor productivity, and direct consumption disutility impacts. Without rapid adaptation, climate change will increase the burden...
Main Authors: | , , , |
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Language: | English en_US |
Published: |
World Bank, Washington, DC
2015
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Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/2015/11/25250702/households-heat-stress-estimating-distributional-consequences-climate-change http://hdl.handle.net/10986/23438 |
Summary: | Recent economic research documents a
range of adverse welfare consequences from extreme heat
stress, including health, labor productivity, and direct
consumption disutility impacts. Without rapid adaptation,
climate change will increase the burden of heat stress
experienced by much of the world’s population in the coming
decades. What will the distributional consequences of this
added heat stress be, and how might this affect optimal
climate policy? Using detailed survey data of household
wealth in 690,745 households across 52 countries, this paper
finds evidence suggesting that the welfare impacts of added
heat stress caused by climate change may be regressive.
Specifically, the analysis finds that poorer households tend
to be located in hotter locations across and within
countries, and poorer individuals are more likely to work in
occupations with greater exposure to the elements not only
across but also within countries. These findings—combined
with the fact that current social cost of carbon estimates
do not include climate damages arising from the productivity
impacts of heat stress—suggest that optimal climate policy,
especially when allowing for declining marginal utility of
consumption, involves more stringent abatement than
currently suggested, and that redistributive adaptation
policies may be required to reduce the mechanical inequities
in welfare impacts arising from climate change. |
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