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Harmful temperatures and consumption expenditure: evidence from Nigerian households

Jubril Animashaun

Lotanna Emediegwu

Nneka Osadolor

Okiemua Okoror

4635 ­ ­ EN ­ ­ 45. October 2024 ­ ­­ ­ climate change extreme heat food expenditure welfare Nigeria

This paper examines the effect of changes in temperature on households’ food expenditure in Nigeria. Using micro-data on consumption expenditure from Nigerian households, we find that extreme heat increases per capita consumption expenditure during dry seasons but not in wet seasons. Prior works show that small-scale farmers attenuate the effects of extreme heat on agricultural productivity through the short-term use of non-traded productive inputs, such as land. This evidence supports the view that the scope of climate change mitigating practices could keep food prices steady despite increases in extreme weather events. However, when investment in tradable inputs like drought-resistant technologies is greater, attenuating weather shocks could lower the welfare of netfood buyers if it increases food prices. To further support our interpretation, we find that relative to households in urban cities, rural households pay more for food during the dry season. We interpret this as a reflection of the higher costs of production associated with extreme heat during the dry season. Our results support policies that offer compensated income to vulnerable households to mitigate the impact of weather shocks in agrarian communities in developing countries

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Фамиль. Рустамов

Institute of Economics of the Ministry of Science and Education, "Economic problems of the agricultural sector" department

  Ph.D., docent  

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Akif. Aghbabali

Baku State University

   

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Mekhman. Rzayev

Sumgait Chemical-Industrial Park

  doctor of agrarian sciences  

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Ramil. Asgarov

Doctoral student of Azerbaijan State Agrarian University

   

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Rovshan. Guliyev

Azerbaijan State Economic University (UNEC)

  prof, dr  

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Gulnara. Salimova

Senior Researcher of the Research Institute for Economic Reforms

   

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Gulsum. Badirzade

Ph.D. student of the Azerbaijan Cooperation University

   

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Vagif.

Center for Local Economic Reforms

  Ph.D., docent  

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Rasul. Balayev

Azerbaijan State University of Economics, professor

  prof, dr  

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Arzu. Huseyn

Azerbaijan Tourism and Management University

  Ph.D., docent  

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Galib. Hajiyev

Department of “Economy of enterprise” of Azerbaijan State University of Economics (UNEC)

  Ph.D., docent  

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Tamraz. Temrazov

Vegetable Research Institute

   

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Aygun. Salimova

Student of Azerbaijan State University of Economics (UNEC)

   

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Huseynaga. Asadov

Ministry of Science and Education of the Republic of Azerbaijan, Institute of Dendrology

  Ph.D., ass, pr  

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Zakir. Guliyev

Baku Business University

  Doctor of Philosophy in Economics  

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Sabuhi. Eldarov

Research Institute of Plant Protection and Technical Plants