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Long-lasting income shocks and adaptations: Evidence from coral bleaching in Indonesia

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  • Chaijaroen, Pasita

Abstract

This paper explores how people adapt to climate shocks, specifically coral bleaching, that have long-lasting impacts on income. Caused mainly by abnormally high sea surface temperature, coral bleaching has significant effects on marine resources. Using panel data from Indonesia and exogenous variations in bleaching, I observe that fishery households in affected areas experienced a decrease in income relative to other households. Although consumption expenditures did not decline significantly in response to these income shocks, these households reduced their protein consumption in the short and long runs. Regarding labor market outcomes, the affected households tended to substantially increase their labor supply and switch industries only in the long run.

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  • Chaijaroen, Pasita, 2019. "Long-lasting income shocks and adaptations: Evidence from coral bleaching in Indonesia," Journal of Development Economics, Elsevier, vol. 136(C), pages 119-136.
    • Handle: RePEc:eee:deveco:v:136:y:2019:i:c:p:119-136
    DOI: 10.1016/j.jdeveco.2018.10.002
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    Cited by:

    1. Hoang, Trung Xuan & Le, Duong Trung & Nguyen, Ha Minh & Vuong, Nguyen Dinh Tuan, 2020. "Labor market impacts and responses: The economic consequences of a marine environmental disaster," Journal of Development Economics, Elsevier, vol. 147(C).
    2. Kaixing Huang & Qianqian Hong, 2024. "The impact of global warming on obesity," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(3), pages 1-32, September.
    3. Yamamoto, Yuki, 2023. "Living under ecosystem degradation: Evidence from the mangrove–fishery linkage in Indonesia," Journal of Environmental Economics and Management, Elsevier, vol. 118(C).
    4. Katrina Kosec & Jie Song, 2021. "The effects of income fluctuations on undernutrition and overnutrition across the lifecycle," Health Economics, John Wiley & Sons, Ltd., vol. 30(10), pages 2487-2509, September.

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    More about this item

    Keywords

    Coral bleaching; Long-term income shock; Labor supply; Consumption; Climate change;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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