Impact of Weather on Household Welfare: Cross Sectional Evidence from Bangladesh

Abstract

This study aims to determine how Bangladeshi household welfare varies depending on the weather. The Household Income Expenditure Survey (HIES) 2016 data and historical Bangladeshi monthly rainfall data are both used in this study. The log of per capita consumption and the food diversity index serve as measures of the welfare at the household level. The numerous illnesses, such as pneumonia, fever, and diarrhea, are used to gauge an individual's level of welfare. This study discovers that rural households' log per capita consumption grows by more than 3% more than that of other households on average for every unit increase in rainfall. Furthermore, food diversification has benefited from rains. Rainfall generally raises the food diversity index, which raises the diversity of foods. This implies that rainfall on average increases households’ welfare.

DOI: 10.7176/JESD/13-18-07

Publication date:September 30^th 2022