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Harmful temperatures and consumption expenditure: evidence from Nigerian households

Jubril Animashaun

Lotanna Emediegwu

Nneka Osadolor

Okiemua Okoror

17524 ­ ­ EN ­ ­ 45. October 2024 ­ ­­ ­ climate change extreme heat food expenditure welfare Nigeria

 

UOT: 551.58

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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AUTHORS

 

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Bagish. Ahmadov

Deputy Director of the Agricultural Economics Research Center

  Doctor of Philosophy in Economics  

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Расим. Алиев

Chief economist, Scientific Research Institute of Agriculture

  Doctor of Philosophy in Economics  

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Tarlan. Gorchiyeva

PhD student of the Agricultural Economics Research Center

   

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Nazrin. Ramazanova

Master of Azerbaijan State University of Economics (UNEC)

   

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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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Teymur. Nagibeyli

Ph.D. student of the Agricultural Economics Research Center

   

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Vahid. Abbasov

Head of the Department of Economics, Baku State University

  prof, dr  

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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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Nargiz. Hasanova

Azerbaijan State Agrarian University

   

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Javid. Hasanov

Senior specialist, Agricultural Research Center Ph.D. student of the Agricultural Research Center

   

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Vahid. Amrahov

Azerbaijan State Agricultural University

  Ph.D., docent  

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Bahruz. Nuriyev

Chief consultant in Ministry of Agriculture of Azerbaijan Republic

   

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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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Elbrus. Akbarov

Azerbaijan State University of Economics (UNEC), senior lecturer

   

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Elnara. Kazimova

Azerbaijan State Agrarian University

  senior lecturer  

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Lala. Jabbarlı

Ph.D. student of the Agricultural Economics Research Center