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Harmful temperatures and consumption expenditure: evidence from Nigerian households

Jubril Animashaun

Lotanna Emediegwu

Nneka Osadolor

Okiemua Okoror

6609 ­ ­ 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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Fariz. Suleymanov

Ph.D. student of the Azerbaijan State Agrarian University

   

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Arzu. Huseyn

Azerbaijan Tourism and Management University

  Ph.D., docent  

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Firdovsi. Fikratzade

Doctoral student at the Institute for Scientific Research on Economic Reforms

  Doctor of Philosophy in Economics  

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Abdulrahim. Dadashov

Ph.D. candidate of UNEC, Agricultural Economics Research Center

   

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Narmin. Sattarova

Ph.D. student of the Odlar Yurdu University

   

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Alizamin. Guliyev

Ph.D. candidate of the Azerbaijan Technical University

   

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Zohra. Abbasova

Ph.D. student of the Agro Researches Center

   

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Nijat. Muradov

Ph.D. student of the Institute of Economics, Ministry of Science and Education of the Republic of Azerbaijan

   

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Sabina. Valiyeva

Doctoral student of the Agro Researches Center

  Ph.D., docent  

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Maarif. Yusiphov

Vegetable Research Institute

   

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Ayaz. Museyibov

Center for Analysis of Economic Reforms and Communication

   

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Ramiz. Isgandarov

Department of "Economics and Statistics" of Azerbaijan Technical University

  prof, dr  

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Gulnar. Bashirova

Master of Azerbaijan State University of Economics (UNEC)

   

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Tahmasib. Huseynov

Azerbaijan State University of Economics (UNEC)

  Doctor of Philosophy in Economics  

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Ismayil. Kheyirkhabarov

Azerbaijan State University of Economics (UNEC)

  Ph.D., docent  

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Elnur. Alakbarov

Dissertant of the Agricultural Economics Research Center