Do climate shocks disadvantage household investment in human capital in Benin? An approach based on the endogenous treatment regression model
Keywords:
Climate shock, Human capital, Endogenous treatment, Climatic zones, Benin
Abstract
The increasing number of drought and flood shocks in Benin is causing considerable economic losses and social disruption. This article looks specifically at the effects of these shocks on household human capital expenditure in Benin's three climatic zones, to highlight the effects specific to each zone. The data used come from the Harmonized Survey of Household Living Conditions. A linear regression model of the endogenous treatment is used for the analyses. Findings indicate that climate shocks reduce household capital expenditure and that this impact depends on the household’s climatic zone of residence. Investment in resilience infrastructure is suggested, as is a policy of social assistance to disaster-stricken households.
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References
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29. McDermott, T. K. J. (2011). Disasters and Development: Natural Disasters, Credit Constraints and Economic Growth. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1843494
30. McDermott, T. K. J. (2012). The Effects of Natural Disasters on Human Capital Accumulation. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2011768
31. MCVDD. (2021). Contribution déterminée au niveau national actualisée du bénin au titre de l’accord de Paris.
32. Peet, E. D. (2021). Early-life environment and human capital: evidence from the Philippines. Environment and Development Economics, 26(1), 1–25. https://doi.org/10.1017/S1355770X20000224
33. Pham, T., & Talavera, O. (2018). Discrimination, Social Capital, and Financial Constraints: The Case of Viet Nam. World Development, 102, 228–242. https://doi.org/10.1016/j.worlddev.2017.10.005
34. Psacharopoulos, G., & Patrinos, H. A. (2018). Returns to investment in education: a decennial review of the global literature. Education Economics, 26(5), 445–458. https://doi.org/10.1080/09645292.2018.1484426
35. Schultz, T. W. (1961). Investment in human capital. Amercian Economic Review, , 51(1), 1–17.
36. Sellers, S., & Gray, C. (2019). Climate shocks constrain human fertility in Indonesia. World Development, 117, 357–369. https://doi.org/10.1016/j.worlddev.2019.02.003
37. Sherval, M., Askew, L. E., & McGuirk, P. M. (2023). Human Cost of Drought. In Encyclopedia of Quality of Life and Well-Being Research (pp. 3274–3280). Springer International Publishing. https://doi.org/10.1007/978-3-031-17299-1_4157
38. Soglo, A. M., & Assouto, B. (2023). Benefits of Membership in a Labor Organization in Benin. Journal of Economics and Development Studies, 11(1), 41–54. https://doi.org/10.15640/jeds.v11n1a5
39. Soglo, Y. Y., & Nonvide, G. M. A. (2019). Climate change perceptions and responsive strategies in Benin: the case of maize farmers. Climatic Change, 155(2), 245-256.
40. Spence, M. (1973). Job Market Signaling. The Quarterly Journal of Economics, 87(3), 355. https://doi.org/10.2307/1882010
41. Teka, O., Alohou, E., Agani, A. O., Hodonou, A., & Alagbe, K. L. (2022). Plan national d’adaptation aux changements climatiques du Bénin.
42. Unterhalter, E. (2009). Education. In S. Deneulin (Ed.), An Introduction to the Human Development and Capability Approach. Routledge. https://doi.org/10.4324/9781849770026
43. Unterhalter, E. (2012). Inequality, capabilities and poverty in four African countries: girls’ voice, schooling, and strategies for institutional change. Cambridge Journal of Education, 42(3), 307–325. https://doi.org/10.1080/0305764X.2012.706253
44. Vignolles, B. (2013). Le capital humain : du concept aux théories. Regards Croisés Sur l’économie, n° 12(2), 37–41. https://doi.org/10.3917/rce.012.0037.
2. Amaya, V. M. G. (2020). Climate shocks and human capital: The impact of the natural disasters of 2010 in Colombia on student achievement. Cuadernos de Economía, 39(79), 303–328. https://doi.org/10.15446/cuad.econ.v39n79.56830
3. Assouto, A. B., & Houngbeme, D. J.-L. (2023). Access to credit and agricultural productivity: Evidence from maize producers in Benin. Cogent Economics & Finance, 11(1). https://doi.org/10.1080/23322039.2023.2196856
4. Baez, J., & De La Fuente, A. (2010). Do Natural Disasters Affect Human Capital? An Assessment Based on Existing Empirical Evidence.
5. Bahinipati, C. S., Rajasekar, U., Acharya, A., & Patel, M. (2017). Flood-induced Loss and Damage to Textile Industry in Surat City, India. Environment and Urbanization ASIA, 8(2), 170–187. https://doi.org/10.1177/0975425317714903
6. Becker, G. (1964). Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education (University of Chicago Press., Ed.).
7. Berthélemy, J.-C. (2008). Les relations entre santé, développement et réduction de la pauvreté. Comptes Rendus Biologies, 331(12), 903–918. https://doi.org/10.1016/j.crvi.2008.08.004
8. Carpena, F. (2019). How do droughts impact household food consumption and nutritional intake? A study of rural India. World Development, 122, 349–369. https://doi.org/10.1016/j.worlddev.2019.06.005
9. Caruso, G. D., Marcos, I. de, & Noy, I. (2023). Climate Changes Affect Human Capital. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4422849
10. Cho, H. (2017). The effects of summer heat on academic achievement: A cohort analysis. Journal of Environmental Economics and Management, 83, 185–196. https://doi.org/10.1016/j.jeem.2017.03.005
11. Cuaresma, J. C. (2010). Natural Disasters and Human Capital Accumulation. The World Bank Economic Review, 24(2), 280–302. https://doi.org/10.1093/wber/lhq008
12. Dutta, A., & Banerjee, S. (2018). Does microfinance impede sustainable entrepreneurial initiatives among women borrowers? Evidence from rural Bangladesh. Journal of Rural Studies, 60, 70–81. https://doi.org/10.1016/j.jrurstud.2018.03.007
13. Goodman, J. (2014). Student absences and snow days as disruptions of instructional TIME. http://www.nber.org/papers/w20221
14. Hallegatte, S., & Théry, D. (2007). Are the economic impacts of climate change underestimated? Revue d’Economie Politique, 117(4), 507–522. https://doi.org/10.3917/redp.174.0507
15. Heckman, J. J. (1978). Dummy Endogenous Variables in a Simultaneous Equation System. Econometrica, 46(4), 931. https://doi.org/10.2307/1909757
16. Hounnou, F. E., Dedehouanou, H., Zannou, A., Bakary, S., & Mahoussi, E. F. (2019). Influence of climate change on food crop yield in Benin republic. Journal of Agricultural Science, 11(5), 281-295.
17. Hountondji, F. (2022). Evaluation des plans, politiques et directives liées à la gestion à long terme des inondations et de la sécheresse dans la portion béninoise du bassin de la volta.
18. Ifecro, M., Aminou, F., & Acclassato Houensou, D. (2022). Pluriactivité et risque de perte de métier : Exploration du cas des agriculteurs au Bénin. Alternatives Managériales Economiques, 4(2), 783–803. https://revues.imist.ma/?journal=AME
19. Joshi, K. (2019). The impact of drought on human capital in rural India. Environment and Development Economics, 24(04), 413–436. https://doi.org/10.1017/S1355770X19000123
20. Kafando, B. (2021). Analyse des effets du capital humain sur le revenu et la pauvreté dans les pays en développement. Université de Sherbrooke.
21. Khalili, N., Arshad, M., Farajzadeh, Z., Kächele, H., & Müller, K. (2020). Effect of drought on smallholder education expenditures in rural Iran: Implications for policy. Journal of Environmental Management, 260, 110136. https://doi.org/10.1016/j.jenvman.2020.110136
22. Khalili, N., Arshad, M., Farajzadeh, Z., Kächele, H., & Müller, K. (2021). Does drought affect smallholder health expenditures? Evidence from Fars Province, Iran. Environment, Development and Sustainability, 23(1), 765–788. https://doi.org/10.1007/s10668-020-00608-1
23. Lamzihri, O., Bari, Y., & El Kamli, M. (2023). Éducation et capital humain : une analyse régionale par économétrie spatiale pour le cas du Maroc Education and human capital: a regional analysis by spatial econometrics for the case of Morocco. Revue Française d’Economie et de Gestion, 3(11), 33–48. www.revuefreg.com
24. Liu, T., He, G., & Turvey, C. G. (2021). Inclusive Finance, Farm Households Entrepreneurship, and Inclusive Rural Transformation in Rural Poverty-stricken Areas in China. Emerging Markets Finance and Trade, 57(7), 1929–1958. https://doi.org/10.1080/1540496X.2019.1694506
25. Lohmann, S., & Lechtenfeld, T. (2015). The Effect of Drought on Health Outcomes and Health Expenditures in Rural Vietnam. World Development, 72, 432–448. https://doi.org/10.1016/j.worlddev.2015.03.003
26. Lokonon, B. O. K. (2019). Farmers’ vulnerability to climate shocks: Insights from the Niger basin of Benin. Climate and development, 11(7), 585-596.
27. Lokonon, B. O., & Mbaye, A. A. (2018). Climate change and adoption of sustainable land management practices in the Niger basin of Benin. In Natural Resources Forum (Vol. 42, No. 1, pp. 42-53). Oxford, UK: Blackwell Publishing Ltd.
28. Maddala, G. S. (1983). Limited-Dependent and Qualitative Variables in Econometrics. . Cambridge: Cambridge University Press.
29. McDermott, T. K. J. (2011). Disasters and Development: Natural Disasters, Credit Constraints and Economic Growth. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1843494
30. McDermott, T. K. J. (2012). The Effects of Natural Disasters on Human Capital Accumulation. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2011768
31. MCVDD. (2021). Contribution déterminée au niveau national actualisée du bénin au titre de l’accord de Paris.
32. Peet, E. D. (2021). Early-life environment and human capital: evidence from the Philippines. Environment and Development Economics, 26(1), 1–25. https://doi.org/10.1017/S1355770X20000224
33. Pham, T., & Talavera, O. (2018). Discrimination, Social Capital, and Financial Constraints: The Case of Viet Nam. World Development, 102, 228–242. https://doi.org/10.1016/j.worlddev.2017.10.005
34. Psacharopoulos, G., & Patrinos, H. A. (2018). Returns to investment in education: a decennial review of the global literature. Education Economics, 26(5), 445–458. https://doi.org/10.1080/09645292.2018.1484426
35. Schultz, T. W. (1961). Investment in human capital. Amercian Economic Review, , 51(1), 1–17.
36. Sellers, S., & Gray, C. (2019). Climate shocks constrain human fertility in Indonesia. World Development, 117, 357–369. https://doi.org/10.1016/j.worlddev.2019.02.003
37. Sherval, M., Askew, L. E., & McGuirk, P. M. (2023). Human Cost of Drought. In Encyclopedia of Quality of Life and Well-Being Research (pp. 3274–3280). Springer International Publishing. https://doi.org/10.1007/978-3-031-17299-1_4157
38. Soglo, A. M., & Assouto, B. (2023). Benefits of Membership in a Labor Organization in Benin. Journal of Economics and Development Studies, 11(1), 41–54. https://doi.org/10.15640/jeds.v11n1a5
39. Soglo, Y. Y., & Nonvide, G. M. A. (2019). Climate change perceptions and responsive strategies in Benin: the case of maize farmers. Climatic Change, 155(2), 245-256.
40. Spence, M. (1973). Job Market Signaling. The Quarterly Journal of Economics, 87(3), 355. https://doi.org/10.2307/1882010
41. Teka, O., Alohou, E., Agani, A. O., Hodonou, A., & Alagbe, K. L. (2022). Plan national d’adaptation aux changements climatiques du Bénin.
42. Unterhalter, E. (2009). Education. In S. Deneulin (Ed.), An Introduction to the Human Development and Capability Approach. Routledge. https://doi.org/10.4324/9781849770026
43. Unterhalter, E. (2012). Inequality, capabilities and poverty in four African countries: girls’ voice, schooling, and strategies for institutional change. Cambridge Journal of Education, 42(3), 307–325. https://doi.org/10.1080/0305764X.2012.706253
44. Vignolles, B. (2013). Le capital humain : du concept aux théories. Regards Croisés Sur l’économie, n° 12(2), 37–41. https://doi.org/10.3917/rce.012.0037.
Published
2024-06-10
How to Cite
Logozo, C. D., Kougblenou Menou, V. M. M., & Hekponhoue, S. (2024). Do climate shocks disadvantage household investment in human capital in Benin? An approach based on the endogenous treatment regression model. European Scientific Journal, ESJ, 30, 207. Retrieved from https://eujournal.org/index.php/esj/article/view/18240
Section
ESI Preprints
Copyright (c) 2024 Christian Duhamel Logozo, Vihoutou Médjikouê Marthe Kougblenou Menou, Sylvain Hekponhoue
This work is licensed under a Creative Commons Attribution 4.0 International License.
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