Rainfall fluctuations and rural poverty: Evidence from Chinese county‐level data

Abstract

Rainfall fluctuations are the major threats caused by climate change. This paper analyses the impact of seasonal rainfall fluctuations on rural poverty using panel data for 992 counties, which are located in humid zone in the south of China from 2000 to 2018. The findings are as follows: (1) Rainfall fluctuations significantly affect rural poverty, specifically, increased rainfall significantly alleviates rural poverty in the dry season, but aggravates rural poverty in the rainy season. (2) The effect of rainfall fluctuations on rural poverty is significantly heterogeneous in different regions. (3) Rainfall fluctuations put low-income areas at greater risk of returning to poverty. (4) The mechanism through which rainfall fluctuations affect rural poverty is agricultural production, and market regulation can mitigate the shock of rainfall fluctuations. Our research provides policy implications for developing countries to address the risks of poverty from climate change.