This research investigates the effects of short-term weather shocks on poverty in Paraguay. Utilizing data from household surveys and climate records from 2004 to 2019, it finds that heat shocks significantly decrease incomes and increase poverty, particularly affecting rural areas and female-headed households. Floods primarily impact urban poverty, accentuating existing regional disparities. The results necessitate targeted adaptation and risk strategies.
In Paraguay, the effort to reduce poverty has stagnated since 2014, a situation attributed in part to a slowdown in economic growth, exacerbated by various climate-related incidents. This study delves into the specific impacts of short-term weather shocks on the impoverished population, employing an extensive dataset combining household surveys with climate data spanning from 2004 to 2019. By employing ordinary least squares pooled regression analysis, the research identifies significant income reductions among households, particularly due to heat shocks, which precipitated an average income decline of 5 percent in urban locales and as much as 8.8 percent in rural regions. Furthermore, the analysis reveals that heat shocks contributed to an increase in poverty levels, with urban and rural areas experiencing rises of 1.7 and 4.2 percentage points, respectively. Urban centers bore the brunt of flooding impacts, resulting in a poverty increase of 1.9 percentage points. Notably, the findings indicate a pronounced vulnerability among female-headed households in rural areas and those engaged in the primary economic sector, underscoring the unequal burden of climate effects based on regional and household characteristics. These insights prompt the necessity for targeted climate adaptation strategies to fortify resilience among the most affected subpopulations.
The relationship between climate-related shocks and poverty in Paraguay remains underexplored, which is crucial given that the country has faced adverse weather events over the past several years. The stagnation of poverty reduction since 2014 highlights the pressing need to understand better how these events influence household incomes and contribute to poverty levels. This study utilizes comprehensive datasets to assess the effects of climatic conditions across different regions and demographics, emphasizing the varied experiences of households based on their characteristics and location.
This study demonstrates that short-term weather shocks have a significant detrimental effect on both household incomes and poverty levels in Paraguay. The findings reveal the acute vulnerability of specific groups, particularly in rural areas, and highlight the urgent need for targeted adaptations to mitigate the impacts of climate risks. Policymakers should prioritize developing strategies that address these vulnerabilities to strengthen the resilience of affected communities across the nation.
Original Source: reliefweb.int
