Access to financial resources and environmental migration of the poor

0557379 - NHU-C 2023 RIV CZ eng V - Research Report
Rakhmetova, Aizhamal - Hoffmann, R. - Pytliková, Mariola
Access to financial resources and environmental migration of the poor.
Prague: CERGE-EI, 2022. 36 s. CERGE-EI Working Paper Series, 724. ISSN 2788-0443
R&D Projects: GA ČR(CZ) GA20-31615S; GA MŠMT(CZ) SVV260611
Grant - others:UK(CZ) GAUK 584120
Institutional support: Cooperatio-COOP
Keywords : climate change * migration * financial resources
OECD category: Applied Economics, Econometrics
https://www.cerge-ei.cz/pdf/wp/Wp724.pdf

Despite an increasing number of studies, there is no scientific consensus on the extent and conditions under which environmental factors influence migration. In particular, little is known about the role played by financial resources that may facilitate or hinder migration under environmental stress. Empirical evidence shows that some households migrate in response to environmental hazards while others remain in place, potentially being trapped due to lack of resources, i.e. poverty constraints. However, little is known about how access to financial resources influences the decision of a household to stay or migrate. On one hand, financial resources can help to alleviate poverty constraints and to cover migration costs, thereby increasing migration (climate-driver mechanism), on the other hand, financial resources can also improve the adaptation capacities of households at the place they reside, and thus reduce migration responses to environmental changes (climate-inhibitor mechanism). To shed light on households’ migration decisions in response to climate shocks depending on their access to financial resources, we utilize rich micro-data from Indonesia and exploit two sources of variation in climate and cash transfers. Our results suggest that better access to financial resources facilitates the climate-inhibitor mechanism for short-term rainfall shocks and natural disasters. At the same time, better accessibility to financial resources enhances the climate-driver mechanism for accumulated rainfall shocks and temperature anomalies.
Permanent Link: http://hdl.handle.net/11104/0331417