Adapting to Climate Risk With Guaranteed Credit: Evidence From Bangladesh

IF 6.6 1区经济学 Q1 ECONOMICS

Econometrica Pub Date : 2024-03-19 DOI:10.3982/ECTA19127

Gregory Lane

引用次数: 0

Abstract

Climate change is increasing the frequency of extreme weather events, with low-income countries being disproportionately impacted. However, these countries often face market frictions that hinder their ability to adopt effective adaptation strategies. In this paper, I explore the role of credit market failures in limiting adaptation. To achieve this, I collaborate with a large microfinance institution and offer a randomly selected group of farmers access to guaranteed credit through an “Emergency Loan” following a negative climate shock. I document three key results. First, farmers who have access to the emergency loan make less costly adaptation choices and are less severely affected when a flood occurs. Second, I find no evidence of adverse spillover effects on households that did not receive the Emergency Loan. Finally, I demonstrate that providing the Emergency Loan is profitable for the microfinance institution, making it a viable tool for the private sector to employ in similar circumstances.

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利用担保信贷适应气候风险：孟加拉国的证据

气候变化正在增加极端天气事件的频率，低收入国家受到的影响尤为严重。然而，这些国家往往面临市场摩擦，阻碍了它们采取有效适应战略的能力。在本文中，我探讨了信贷市场失灵在限制适应方面的作用。为此，我与一家大型小额信贷机构合作，通过 "紧急贷款 "的方式，为随机选择的一组农民提供在负面气候冲击后获得担保信贷的机会。我记录了三个关键结果。首先，获得紧急贷款的农民在洪灾发生时做出的适应性选择成本较低，受到的影响也较小。其次，我没有发现任何证据表明未获得紧急贷款的家庭会受到不利的溢出效应。最后，我证明了提供紧急贷款对小额贷款机构有利可图，使其成为私营部门在类似情况下使用的可行工具。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Econometrica 社会科学-数学跨学科应用

CiteScore

11.00

自引率

3.30%

发文量

审稿时长

6-12 weeks

期刊介绍： Econometrica publishes original articles in all branches of economics - theoretical and empirical, abstract and applied, providing wide-ranging coverage across the subject area. It promotes studies that aim at the unification of the theoretical-quantitative and the empirical-quantitative approach to economic problems and that are penetrated by constructive and rigorous thinking. It explores a unique range of topics each year - from the frontier of theoretical developments in many new and important areas, to research on current and applied economic problems, to methodologically innovative, theoretical and applied studies in econometrics. Econometrica maintains a long tradition that submitted articles are refereed carefully and that detailed and thoughtful referee reports are provided to the author as an aid to scientific research, thus ensuring the high calibre of papers found in Econometrica. An international board of editors, together with the referees it has selected, has succeeded in substantially reducing editorial turnaround time, thereby encouraging submissions of the highest quality. We strongly encourage recent Ph. D. graduates to submit their work to Econometrica. Our policy is to take into account the fact that recent graduates are less experienced in the process of writing and submitting papers.