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Climate change, agricultural production and poverty in India

Kar, Saibal and Das, Nimai (2015): Climate change, agricultural production and poverty in India. Published in:

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Abstract

The low-income households in the South Asian countries are highly sensitive to climate-intensive sectors like agriculture, mainly via negative impact for the food production system as a whole. Therefore, the climate-induced supply shortfalls in agriculture and consequent food price shocks may adversely affect consumption in these households. The tension between economic development, climate change and agricultural production offers a challenging research question not dealt with in recent studies for India. We explore the effect of climate change on farmland value and use a counterfactual measure of the farm revenue on rural consumption expenditure. We found a discerning impact of the climate change on net revenue and wellbeing of the rural people. A theoretical exercise generalizes the empirical findings.

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