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Social Protection in the Face of Climate Change : Targeting Principles and Financing Mechanisms
- Publication Year :
- 2015
- Publisher :
- World Bank, Washington, DC, 2015.
-
Abstract
- Climate risk is an important driver of long-term poverty dynamics, especially in rural regions. This paper builds a dynamic, multi-generation household model of consumption, accumulation, and risk management to draw out the full consequences of exposure to climate risk. The model incorporates the long-term impacts of consumption shortfalls, induced by the optimal “asset smoothing” coping behavior of the vulnerable, on the human capital and long-term wellbeing of families. The analysis shows that the long-term level and depth of poverty can be improved by incorporating elements of “vulnerability-targeted social protection” into a conventional system of social protection. The paper also explores the degree to which vulnerability-targeted social protection can be implemented through a subsidized insurance mechanism. The analysis shows that insurance-based vulnerability-targeted social protection dominates (in economic growth and poverty reduction measures) both in-kind transfer mechanisms and vulnerability-targeted protection paid for using a public budget. The relative gains brought about by this scheme of insurance-augmented social protection increase—at least for a while—under climate change scenarios. However, if climate change becomes too severe, then even this novel form of social protection loses its ability to stabilize the extent and depth of poverty.
- Subjects :
- MEASURES
INCOME SHOCK
INVESTMENT
PRICE SUBSIDIES
POLICY SCENARIO
HUMAN ASSETS
DEVELOPING COUNTRY
ECONOMIC GROWTH
BUDGET
POVERTY MAP
ALLOCATION
WEATHER INSURANCE
COST OF INSURANCE
RURAL HOUSEHOLDS
SUBSISTENCE
PHYSICAL ASSETS
STOCKS
INSURANCE COVERAGE
LIVESTOCK INSURANCE
POOR
INCOME
INVESTMENTS
RISK REDUCTION
POORER HOUSEHOLDS
PUBLIC BUDGET
INVESTING
JOBS
POVERTY RATES
CHRONIC MALNUTRITION
MALNUTRITION
RETURNS
SCENARIOS
POVERTY
DYNAMIC MODEL
TRANSFER PROGRAMS
MORAL HAZARD
INSURANCE CONTRACT
LIQUIDITY CONSTRAINTS
FARMERS
RISK MANAGEMENT
GOVERNMENT BUDGET
CONSUMPTION SMOOTHING
IMPACT OF SHOCKS
POOR HOUSEHOLD
MODELS
PHYSICAL ASSET
HOLDING
DEVELOPMENT ECONOMICS
MARKETS
FINANCE
ADMINISTRATIVE COSTS
TRANSFERS
RURAL AREAS
FOOD INTAKE
RURAL REGIONS
CONSUMPTION
LIQUIDITY
POVERTY REDUCTION
RISKS
VALUE OF ASSETS
CHRONIC POVERTY
MARKET
VULNERABLE HOUSEHOLDS
INEQUALITY
POVERTY GAP
AGRICULTURAL DEVELOPMENT
ASSET LOSSES
DEMAND
CLIMATE CHANGE
TARGETING
CONSUMPTION POVERTY
PRIVATE FINANCING
IMPACT ON POVERTY
HUMAN CAPITAL ASSETS
POVERTY MAPS
INSURANCE PREMIUM
UTILITY FUNCTION
IDIOSYNCRATIC SHOCKS
AGRICULTURAL ECONOMICS
BUDGET CONSTRAINT
EXCHANGE
POVERTY DYNAMICS
FOOD NEEDS
POVERTY MEASURES
HUMAN CAPITAL LEVELS
DROUGHT
VALUE
POOR FAMILIES
POLICIES
POLICY
REGIONS
CASH TRANSFER PROGRAMS
ECONOMIC IMPACT
CD
PENALTIES
HUMAN CAPITAL
GOOD
INSURANCE
NUTRITION
PRICE
HOLDINGS
NATURAL DISASTERS
SOCIAL PROTECTION
SMALLHOLDER AGRICULTURE
OPTION
FIXED COSTS
REGION
PRODUCTION TECHNOLOGY
FOOD AID
CHRONICALLY POOR
DEVELOPING COUNTRIES
INTERNATIONAL BANK
CASH TRANSFER PROGRAM
FUTURE
CONTRACT
INVESTMENT STRATEGIES
CONTRACT DESIGN
CLIMATE CHANGE SCENARIOS
RESOURCE ECONOMICS
INSURANCE MECHANISMS
CONTRACTS
POOR HOUSEHOLDS
INSURANCE PRODUCTS
BUDGET CONSTRAINTS
INCOME RISK
RURAL
DESTITUTE HOUSEHOLDS
INCOME GAINS
POVERTY LINE
SAVINGS
CLIMATE
CASH TRANSFER
INSURANCE PAYMENTS
IMPACTS OF CLIMATE CHANGE
INSURANCE SCHEME
INFORMAL INSURANCE
SCHOOL ATTENDANCE
INSURANCE CONTRACTS
SHARE
FAMILY INCOME
SOCIAL NETWORKS
POOR POPULATIONS
Subjects
Details
- Language :
- English
- Database :
- OpenAIRE
- Accession number :
- edsair.od......2456..d6f1933edc9cc141654d74de475221ad