We estimate the impact of subsequent droughts on the revenues of farmers in Ethiopia factoring in their adaptive capacity. We find that after the first drought, there is no significant difference in the revenue of the farmers who experienced a drought, as compared to those who did not. However, there is a loss in revenue after the second drought, specifically for those farmers that are endowed with less assets. This finding underscores that a rise in the frequency of extreme events and shocks can potentially have significant local distributional implications, with wealth as a major distinguishing factor.

In the context of climate change and increasing occurrences of extreme events, it is essential to understand farmers' responses to weather shocks and adaptations. This paper uses a panel dataset of 311 selected Indian districts ranging from 1966 to 2009 to investigate how application of chemical fertilizers varies in response to rainfall shocks. Two rainfall shock measures are constructed based on deviation in rainfall from the normal, a categorical measure of rainfall shock; and another, a continuous index of negative rainfall deviation. Based on a panel fixed effect regression, the study finds no apparent reduction in the level of fertilizer use in negative rainfall shock years. However, with a one-year lagged rainfall shock, a reduction in fertilizer application rate is observed for the continuous drought index. Further, exposure to higher intensity droughts in the previous year leads to an increase in the amount of fertilizer application in the current year.

Migration is a common means of adaptation to weather shocks. Previous research has identified heterogeneous effects according to age, sex, and wealth, but little is still known about how marriage-related institutions affect such migration. Relying on a quasi-experimental identification strategy, we analyze marriage- and work-related migration in Malawi following large droughts, separating the effects for female and male migrants according to different age groups. The analysis based on stated motives of migration reveals marginal decreases in marriage-related migration among girls, but increases in marriage-related migration within districts for women in older age groups. We also find large increases in work-related between-district migration for boys, and to a smaller extent also for girls following severe drought. The results add to the evidence of the potentially adverse effects of migration as a coping mechanism following drought when other means of insurance do not exist.

People living in poverty are particularly vulnerable to shocks, including those caused by natural disasters such as floods and droughts. This paper analyses household survey data and hydrological riverine flood and drought data for 52 countries to find out whether poor people are disproportionally exposed to floods and droughts, and how this exposure may change in a future climate. We find that poor people are often disproportionally exposed to droughts and floods, particularly in urban areas. This pattern does not change significantly under future climate scenarios, although the absolute number of people potentially exposed to floods or droughts can increase or decrease significantly, depending on the scenario and region. In particular, many countries in Africa show a disproportionally high exposure of poor people to floods and droughts. For these hotspots, implementing risk-sensitive land-use and development policies that protect poor people should be a priority.