The Impacts of Climate Variability on Household Consumption: Evidence Based on Village Weather Data in Indonesia

This study investigates the impacts of long-term climate variability on household consumption in Indonesia, a country highly vulnerable to climate change. The analysis combines household survey data from nearly 5,998 families with satellite-derived weather data from NASA POWER spanning 30 years. We...

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Main Authors: Pratiwi Ira Eka, Bokyeong Park
Format: Article
Language:English
Published: Korea Institute for International Economic Policy 2023-12-01
Series:East Asian Economic Review
Subjects:
Online Access:https://dx.doi.org/10.11644/KIEP.EAER.2023.27.4.425
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author Pratiwi Ira Eka
Bokyeong Park
author_facet Pratiwi Ira Eka
Bokyeong Park
author_sort Pratiwi Ira Eka
collection DOAJ
description This study investigates the impacts of long-term climate variability on household consumption in Indonesia, a country highly vulnerable to climate change. The analysis combines household survey data from nearly 5,998 families with satellite-derived weather data from NASA POWER spanning 30 years. We use the long-term variability in temperature and precipitation as a proxy for climate change. This study examines the impact of climate change which proceeds over the long term, unlike previous studies concerning one-off or short-term climate events. In addition, using satellite data enhances the accuracy of households’ exposure to climate variability. The analysis finds that households in a village with higher temperature and precipitation variability significantly consume less food. This implies that households more exposed to climate change are at higher risk of malnutrition in developing countries. This study has a limitation that it cannot rule out the potential endogeneity of choosing a climate vulnerable residential location due to economic poorness.
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spelling doaj.art-33571f6ba8a34b6a95d6a8da817f33d12024-01-09T08:48:57ZengKorea Institute for International Economic PolicyEast Asian Economic Review2508-16402508-16672023-12-0127427330110.11644/KIEP.EAER.2023.27.4.425The Impacts of Climate Variability on Household Consumption: Evidence Based on Village Weather Data in IndonesiaPratiwi Ira Eka0https://orcid.org/0000-0002-3583-4094Bokyeong Park1https://orcid.org/0000-0001-7745-1430Kyung Hee UniversityKyung Hee UniversityThis study investigates the impacts of long-term climate variability on household consumption in Indonesia, a country highly vulnerable to climate change. The analysis combines household survey data from nearly 5,998 families with satellite-derived weather data from NASA POWER spanning 30 years. We use the long-term variability in temperature and precipitation as a proxy for climate change. This study examines the impact of climate change which proceeds over the long term, unlike previous studies concerning one-off or short-term climate events. In addition, using satellite data enhances the accuracy of households’ exposure to climate variability. The analysis finds that households in a village with higher temperature and precipitation variability significantly consume less food. This implies that households more exposed to climate change are at higher risk of malnutrition in developing countries. This study has a limitation that it cannot rule out the potential endogeneity of choosing a climate vulnerable residential location due to economic poorness.https://dx.doi.org/10.11644/KIEP.EAER.2023.27.4.425climate changeclimate variabilityconsumptionsatellite dataindonesia
spellingShingle Pratiwi Ira Eka
Bokyeong Park
The Impacts of Climate Variability on Household Consumption: Evidence Based on Village Weather Data in Indonesia
East Asian Economic Review
climate change
climate variability
consumption
satellite data
indonesia
title The Impacts of Climate Variability on Household Consumption: Evidence Based on Village Weather Data in Indonesia
title_full The Impacts of Climate Variability on Household Consumption: Evidence Based on Village Weather Data in Indonesia
title_fullStr The Impacts of Climate Variability on Household Consumption: Evidence Based on Village Weather Data in Indonesia
title_full_unstemmed The Impacts of Climate Variability on Household Consumption: Evidence Based on Village Weather Data in Indonesia
title_short The Impacts of Climate Variability on Household Consumption: Evidence Based on Village Weather Data in Indonesia
title_sort impacts of climate variability on household consumption evidence based on village weather data in indonesia
topic climate change
climate variability
consumption
satellite data
indonesia
url https://dx.doi.org/10.11644/KIEP.EAER.2023.27.4.425
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