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Harmful temperatures and consumption expenditure: evidence from Nigerian households

Jubril Animashaun

Lotanna Emediegwu

Nneka Osadolor

Okiemua Okoror

5253 ­ ­ 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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Turaj. Musayev

Agricultural Economics Research Center, leading specialist

   

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Turan. Hajiyeva

Specialist of the Agricultural Research Center

   

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Abbas. Safarov

Ph.D. student of the Agricultural Research Center

   

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Rasul. Balayev

Azerbaijan State University of Economics, professor

  prof, dr  

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Samir. Agayev

Ph.D. student of Azerbaijan State Economic University (UNEC)

   

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Tahmina. Safarli

Ph.D. student of the Baku State University

   

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Andriy. Popovych

Instytut Ekonomiki Rolnictwa i Gospodarki Żywnościowej, Warszawa, Polska / Agricultural and Food Economics State Research Institute, Warsaw, Poland

  Ph.D.  

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Zakir. Guliyev

Baku Business University

  Doctor of Philosophy in Economics  

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Akif. Aghbabali

Baku State University

   

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Jalal. Safarov

Ph.D. student of the Agricultural Research Center

   

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Talib. Huseynov

PhD student of the Agricultural Economics Research Center

   

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Isak. Hasanov

Head of Shamkir Support Point

   

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Gunel. Naghiyeva

Master of Azerbaijan State University of Economics (UNEC)

   

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Naila. Aliyeva

Associate professor of the Azerbaijan State Economic University (UNEC) Doctoral student of the Agro Researches Center

  Doctor of Philosophy in Economics  

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Samir. Akhmedov

Ph.D. student of the Agricultural Economics Research Center

   

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Huseynaga. Asadov

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

  Ph.D., ass, pr