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221013 ||| eng |
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|a Carter, Michael R.
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|a Social Protection in the Face of Climate Change
|h Elektronische Ressource
|b Principles and Financing Mechanisms
|c Carter, Michael R
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260 |
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|a Washington, D.C
|b The World Bank
|c 2015
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|a 33 p
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|a Carter, Michael R.
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|a Janzen, Sarah A.
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|a eng
|2 ISO 639-2
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|b WOBA
|a World Bank E-Library Archive
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|a World Bank E-Library Archive
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|a 10.1596/1813-9450-7476
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|u http://elibrary.worldbank.org/doi/book/10.1596/1813-9450-7476
|x Verlag
|3 Volltext
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|a 330
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|a Climate risk is an important driver of long-term poverty dynamics, especially in rural regions. This paper builds a dynamic, multi-generation household model of consumption, accumulation, and risk management to draw out the full consequences of exposure to climate risk. The model incorporates the long-term impacts of consumption shortfalls, induced by the optimal "asset smoothing" coping behavior of the vulnerable, on the human capital and long-term wellbeing of families. The analysis shows that the long-term level and depth of poverty can be improved by incorporating elements of "vulnerability-targeted social protection" into a conventional system of social protection. The paper also explores the degree to which vulnerability-targeted social protection can be implemented through a subsidized insurance mechanism. The analysis shows that insurance-based vulnerability-targeted social protection dominates (in economic growth and poverty reduction measures) both in-kind transfer mechanisms and vulnerability-targeted protection paid for using a public budget. The relative gains brought about by this scheme of insurance-augmented social protection increase-at least for a while-under climate change scenarios. However, if climate change becomes too severe, then even this novel form of social protection loses its ability to stabilize the extent and depth of poverty
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