Template-Type: ReDIF-Paper 1.0
Author-Name: Eeshita Gupta
Author-Name-First: Eeshita
Author-Name-Last: Gupta
Author-Email: egupta13@gmail.com
Author-Workplace-Name:` Indian Statistical Institute and KPMG
Author-Name: Bharat Ramaswami
Author-Name-First: Bharat
Author-Name-Last: Ramaswami
Author-Email: bharat.ramaswami@ashoka.edu.in
Author-Workplace-Name:` Department of Economics, Ashoka University
Author-Name: E. Somanathan
Author-Name-First: E.
Author-Name-Last: Somanathan
Author-Email: som@isid.ac.in
Author-Workplace-Name:` Indian Statistical Institute
Title: The Distributional Impact of Climate Change: Why Food Prices Matter
Abstract: We analyze the impact of agricultural productivity losses stemming from climate change in an economy without frictions. The first-order GDP impacts are expected to be small. But the poor have higher food budget shares and food prices will rise. How do distributional impacts diverge from the GDP impact? This is the question that is addressed. The paper considers two major sets of comparative statics: the effect of trade and the effect of economic growth. The model is calibrated to Indian data of 2009 and projections for 2030. The percentage loss of income for the landless is six times the GDP impact in a closed economy. Trade halves this effect and economic growth moderates it substantially. Despite the food price rise, nearly all farmers lose from climate change. The model is simple enough for impact channels to be transparent.
length: 38
Creation-Date: 20210203
Revision-Date: 
Publication-Status: 
File-URL: https://dp.ashoka.edu.in/ash/wpaper/paper50_0.pdf
File-Format: Application/pdf 
Number: 50
Keywords: Climate change
Keywords: distribution
Keywords: food prices
Keywords: general equilibrium
Keywords: India
Handle: RePEc:ash:wpaper:50