IISES International Academic Conference, London

CLIMATE CHANGE AND POVERTY IN SELECTED AFRICAN COUNTRIES A GMM APPROACH

USMAN A. USMAN

Abstract:

Admist economic downturn and fiscal reversals, coupled with Russia Ukraine war, the most economic challenge that had bedeviled economies is climate change causing rise in poverty. The issue of climate change has gained attention in the international space for almost a decade with institution reviewing some of the tactics to reduce its surge effect on household. This study investigates the effect of climate change on household consumption expenditure using data set from fifty four (54) African countries span 2013 to 2022. This study seeks to employ the Generalized Method of Moment (GMM) and the result of the study indicates that there is a short run relationship. The lag value of household consumption expenditure at first and second lag is statistically significant and is best instruments to be included in the model. The coefficient Co2 emission has a positive and statistical significant effect on household consumption. Temperature economic globalization and social globalization have a negative but non-significant effect on household consumption expenditure. Political globalization has a positive but non-significant effect on household consumption expenditure in African countries

Keywords: Climate change, growth, household consumption expenditure, poverty, GMM