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Harmful temperatures and consumption expenditure: evidence from Nigerian households

Jubril Animashaun

Lotanna Emediegwu

Nneka Osadolor

Okiemua Okoror

4673 ­ ­ 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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Ramil. Aliyev

Ph.D. student of the Agricultural Research Center

   

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Lala. Jabbarlı

Ph.D. student of the Agricultural Economics Research 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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Rashad. Huseynov

Agricultural Research Center, director

  Doctor of Philosophy in Economics  

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Zohra. Abbasova

Ph.D. student of the Agro Researches Center

   

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Isak. Hasanov

Head of Shamkir Support Point

   

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Yegane. Abbasova

Azerbaijan State Agrarian University

  Doctor of Philosophy in Economics  

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Umkhanim. Agakishiyeva

Teacher of Azerbaijan University of Architecture and Construction

   

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Turaj. Musayev

Agricultural Economics Research Center, leading specialist

   

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Abrehet. Mehari

Lecturer in Ethiopia Civil Service University, Ethiopia, Addis Ababa; Ph.D. candidate in Azerbaijan State University of Economics

   

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Konul. Mamedova

Ph.D. student of the Agricultural Economics Research Center

   

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Hagar. Namazova

Ph.D. candidate of the Azerbaijan State Economic University (UNEC)

   

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Anar. Bayramov

Ph.D. student of the Agricultural Research Center

   

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Saadat. Guliyeva

Azerbaijan Academy of Labor and Social Relations

  Doctor of Philosophy in Economics  

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Vusala. Nagiyeva

Azerbaijan Cooperation University

  Ph.D., docent  

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Zakir. Guliyev

Baku Business University

  Doctor of Philosophy in Economics