Climate shocks and wealth inequality in the UK : evidence from monthly data
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Date
Authors
Sheng, Xin
Chisadza, Carolyn
Gupta, Rangan
Pierdzioch, Christian
Journal Title
Journal ISSN
Volume Title
Publisher
Springer
Abstract
This paper investigates both the linear and nonlinear effects of climate risk shocks on wealth inequality in the UK using the
local projections (LPs) method, based on high-frequency, i.e., monthly data. The linear results show that climate risk shocks
lead to an increase in wealth inequality in the longer term. The nonlinear results present some evidence of heterogeneous
responses of wealth inequality to climate risk variable shocks between high- and low-climate risk regimes. The findings
highlight the disproportionate increased burden of climate change on households that are already experiencing poverty,
particularly households in high-climate risk areas. As such, measures to mitigate the adverse effects of climate change need
to be tailored so as not to overburden the poor.
Description
DATA AVAILABILITY : The datasets used and/or analyzed in the current study
are all publicly available as indicated in the data segment of the paper,
and are also available from the corresponding author on a reasonable
request.
Keywords
Climate change, Climate shock, Wealth inequality, Temperatures, United Kingdom (UK), SDG-13: Climate action, SDG-01: No poverty, SDG-08: Decent work and economic growth
Sustainable Development Goals
SDG-01:No poverty
SDG-08:Decent work and economic growth
SDG-13:Climate action
SDG-08:Decent work and economic growth
SDG-13:Climate action
Citation
Sheng, X., Chisadza, C., Gupta, R. et al. 2023, 'Climate shocks and wealth inequality in the UK : evidence from monthly data', Environmental Science and Pollution Research, vol. 30, pp. 77771-77783. https://DOI.org/10.1007/s11356-023-27342-1.