Vulnerability to Drought and Food Price Shocks

dc.creatorVargas Hill, Ruth
dc.creatorPorter, Catherine
dc.date2017-01-05T22:50:35Z
dc.date2017-01-05T22:50:35Z
dc.date2016-12
dc.date.accessioned2026-07-01T00:45:20Z
dc.descriptionAlthough the measurement and determinants of poverty have been widely studied, vulnerability, or the threat of future poverty, has been more difficult to investigate due to data paucity. This paper combines nationally representative household data with objective drought and price information to quantify the causes of vulnerability to poverty in Ethiopia. Previous estimates have relied on self-reported shocks and variation in outcomes within a survey, which is inadequate for shocks such as weather and prices that vary more across time than space. Historical distributions of climate and price shocks in each district were used to simulate the probable distribution of future consumption for individual households; these were then used to quantify vulnerability to poverty. The analysis shows that many Ethiopians are unable to protect their consumption against lack of rainfall and sudden increases in food prices. A moderate drought causes a 9 percent reduction in consumption for many rural households, and high inflation causes a 14 percent reduction in the consumption of uneducated households in urban areas. Vulnerability of rural households is considerably higher than that of urban households, despite realized poverty rates being fairly similar. This finding reflects that the household survey in 2011 was conducted during a year of good rainfall but rapid food price inflation. The results highlight the need for caution in using a snapshot of poverty to target programs, as underlying rates of vulnerability can be quite different from the poverty rate captured at one point in time. The results also suggest that significant welfare gains can be made from risk management in both rural and urban areas.
dc.formatapplication/pdf
dc.formattext/plain
dc.identifierhttp://documents.worldbank.org/curated/en/959471482167974723/Vulnerability-to-drought-and-food-price-shocks-evidence-from-Ethiopia
dc.identifierhttps://hdl.handle.net/10986/25819
dc.identifier10.1596/1813-9450-7920
dc.identifier.urihttp://hdl.handle.net/123456789/410471
dc.languageEnglish
dc.languageen_US
dc.publisherWorld Bank, Washington, DC
dc.relationPolicy Research Working Paper;No. 7920
dc.rightsCC BY 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by/3.0/igo
dc.rightsWorld Bank
dc.subjectvulnerability
dc.subjectpoverty
dc.subjectdrought
dc.subjectinflation
dc.subjectclimate change impacts
dc.subjectprice shocks
dc.subjectnatural disasters
dc.subjectrainfall
dc.subjectfood prices
dc.subjectfood security
dc.titleVulnerability to Drought and Food Price Shocks
dc.titleEvidence from Ethiopia
dc.typeWorking Paper
dc.typeDocument de travail
dc.typeDocumento de trabajo

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