The negative effect of temperature variability on household wealth in low- and middle-income countries

The objective of this research paper is to investigate the causal relationship between day-to-day temperature variability and household wealth in low- and middle-income countries (LMICs), and to explore how this relationship may vary across different regions. By leveraging high-resolution 'big data' on climate and household wealth, combined with novel analytical approaches, this study aims to provide nuanced insights into the economic impacts of climate variability in diverse regional contexts within LMICs.

The findings show a highly statistically significant negative effect of increases in day-to-day temperature variability on household wealth in LMICs, which is remarkably robust across different econometric specifications. This result provides evidence that households in LMICs will likely be negatively impacted by increases in temperature variability. In light of this, our findings highlight the importance of building climate resilience amongst vulnerable populations in LMICs.