Do weather events affect income inequality in Africa?
by Mark Edem Kunawotor; Godfred Alufar Bokpin; Patrick O. Asuming; Kofi A. Amoateng
Interdisciplinary Environmental Review (IER), Vol. 21, No. 2, 2021

Abstract: This paper investigates the effects of weather events on income inequality in Africa over the period 1990-2017. Our novel findings using GMM reveal a non-monotonic U-shape effect of the incidence of weather events on income inequality. The result of the simultaneous quantile regression shows that weather events increase income inequality at the 10th, 25th, 50th and 75th percent quantiles. In terms of weather events type, we also find a non-monotonic U-shape effect of the incidence of flood on income inequality. Furthermore, some institutional quality indicators such as the control of corruption, political stability and rule of law tend to moderate the impacts weather events have on income inequality. We however find no statistically significant mediating effect of weather events on income inequality through agricultural productivity in our sample. Again, there is no significant moderating effect of adaptive capacity on income inequality. We suggest that income inequality concerns should not be ignored in global climate change discussions. Furthermore, African countries should strengthen their institutions and adaptive capacities as they remain very weak in the continent.

Online publication date: Fri, 24-Sep-2021

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