Can remittances contribute to financing climate actions in developing countries? Evidence from analyses of households’ climate hazard exposure and adaptation actors in SE Nigeria

Abstract

Migrant remittances are potentially significant sources of funding for climate change adaptation and resilience building in developing countries. However, very little is understood about the linkages between climate actions and remittances at the household level. It is not clear how remittances can affect households’ responses to climate change. This paper presents evidence from analyses of the associations between remittances to households, their climate hazard exposure, and adaptation actors. It uses concurrent data on international remittances receipts, three climate change related hazards (flooding, intense and irregular rainfall), and main adaptation actors (self/family, community, government, and NGOs) from over 600 households in South Eastern Nigeria. The results showed that household incidence of remittances is low (15%) while exposure to climate hazards is higher (flooding: 41.2%, intense rainfall: 47.1%, irregular rainfall: 29.9%). Nominal (contingency coefficient) associations between remittances and household climate hazard exposure and remittances and household adaptation actors were mostly moderate and insignificant. Therefore, households that received remittances and those that did not were not significantly different in terms of their exposure to climate hazard and main actors in climate adaptation. Self/families were the main actors in household climate actions. Governments and NGO actors were less prominent. The results suggest that unregulated remittances have limited impact on household climate hazard exposure and adaptive actions. However, there are indications that the contribution of remittances to financing climate adaptation may be enhanced by addressing issues with cost of remitting and remittee understanding of climate change to increase remittances volumes, incidence, and use.

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