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Importance of changing food habits in adapting to heat waves: Observations from private adaptation cost estimates Saudamini Das, 1.Institute of Economic Growth 2.SSN College, DU 3.Fellow, SANDEE Economics of Climate, Food, Energy and Environment (CECFEE) workshop, Indian Statistical Institute, Delhi, 2 nd Nov 2015

Importance of changing food habits in adapting to heat waves: Observations from private adaptation cost estimates Saudamini Das, 1.Institute of Economic

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Heat wave – a big killer 1. Mortality & morbidity -- the most lethal weather phenomenon (biggest killer of all natural calamities) -- Fatality counts: -- on average 400/year in USA, in 2003 in Central Europe, in 2003 heat waves in India (AP),… in 2010 in East Europe and Russian (50000 in Russia) -- WMO predicts heat related fatalities will double in less than 20 years 2. Productivity loss -- less talked about, few studies % output loss / 1 ⁰ C rise in temperature in Caribbean and Central America of which, 0.1% loss is in agriculture and 2.4% loss in industries due to thermal stress of workers (Hsiang, 2010 (PNAS); Dell, Jones, and Olken, 2009 (NBER WP); Jones and Olken, 2008 (AER)

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Page 1: Importance of changing food habits in adapting to heat waves: Observations from private adaptation cost estimates Saudamini Das, 1.Institute of Economic

Importance of changing food habits in adapting to heat waves: Observations from private

adaptation cost estimates

Saudamini Das,1.Institute of Economic Growth,

2.SSN College, DU3.Fellow, SANDEE

Economics of Climate, Food, Energy and Environment (CECFEE) workshop, Indian Statistical Institute, Delhi, 2nd Nov 2015

Page 2: Importance of changing food habits in adapting to heat waves: Observations from private adaptation cost estimates Saudamini Das, 1.Institute of Economic

Heat waves• Extended period of hot and humid weather

• Relatively defined : -- 28 deg C in Denmark -- 32 deg C in NW USA -- 40 deg C in Australia -- 45 deg C in India ,….

• Heat stress: if core body temperature > 37deg C or skin temperature > 35 deg C

Page 3: Importance of changing food habits in adapting to heat waves: Observations from private adaptation cost estimates Saudamini Das, 1.Institute of Economic

Heat wave – a big killer1. Mortality & morbidity -- the most lethal weather phenomenon (biggest killer of all natural calamities) -- Fatality counts: -- on average 400/year in USA, -- 35000 in 2003 in Central Europe, -- 3000 in 2003 heat waves in India (AP),… -- 70000 in 2010 in East Europe and Russian (50000 in Russia) -- WMO predicts heat related fatalities will double in less than 20 years

2. Productivity loss -- less talked about, few studies -- 2.5% output loss / 1⁰C rise in temperature in Caribbean and Central

America of which, 0.1% loss is in agriculture and 2.4% loss in industries due to thermal stress of workers

(Hsiang, 2010 (PNAS); Dell, Jones, and Olken, 2009 (NBER WP); Jones and Olken, 2008 (AER)

Page 4: Importance of changing food habits in adapting to heat waves: Observations from private adaptation cost estimates Saudamini Das, 1.Institute of Economic

Temperature affect productivity• Thermal stress reduce productivity (Ergonomics studies) ---- productivity may fall by 5–7% at the elevated indoor temperatures, ---- 2% decline in productivity for 1⁰C increase in temp (Niemela et al.,

2002; Lan et al., 2010; Mahamed & Srinavin, 2005)

• High temperature reduce work efficiency in open environment ( Economic studies)

--- Beyond 26°C, manual workers worked about 1.8 percent less for

every1⁰C rise in temp (Zivin and Neidell, 2011)  --- Effective labor supply (composite of labor hours, task performance and

effort) decrease for temperature variations beyond biological optimum (Heat and Park, 2014)

Page 5: Importance of changing food habits in adapting to heat waves: Observations from private adaptation cost estimates Saudamini Das, 1.Institute of Economic

Heat Wave in Odisha

Page 6: Importance of changing food habits in adapting to heat waves: Observations from private adaptation cost estimates Saudamini Das, 1.Institute of Economic

Heat Wave Management in Odisha after 1998

• Regular: Dissemination of HW warning, Jal Chhatra, Health facility, rescheduling of work hours, school timing, bus timing etc.

• HW management under Disaster Risk Management (DRM) Program (2002 onwards)

• Awareness Campaign (more intensive after 2007)

• Private (reactionary adaptation: buying AC, using car in place of scooter – income based)

• Physiological Adaptation

Page 7: Importance of changing food habits in adapting to heat waves: Observations from private adaptation cost estimates Saudamini Das, 1.Institute of Economic

What I study?

• Coping strategy of low income urban workers to heat stress

-- effect on time allocation to different work -- change in consumption -- change to living place (both short run and long run) -- any other effect, like change in occupation etc.

Page 8: Importance of changing food habits in adapting to heat waves: Observations from private adaptation cost estimates Saudamini Das, 1.Institute of Economic

Equilibrium under heat wave

Z1 : leisure; Z2 :housework

Z2*: Minimum possible time needed for house work

AB: PPC for Z1 and Z2,

e1: summer equilibrium,

e2: heat wave equilibrium.

e*

Page 9: Importance of changing food habits in adapting to heat waves: Observations from private adaptation cost estimates Saudamini Das, 1.Institute of Economic

Theoretical Model

),( 21 ZZUU

)(11

*

)( TTcZhl 0)(0)( 11 ZhandZh

22 Zl

321 lllL

}2,1{, iZX iii

AZpZpIcZhZLwIllLwIwl TT

222111

0)(

1202103 ])([)(*

with

T is actual daytime maximum temperature,T* is maximum bearable temperature‘c’ is adaptation parameter

(Input requirement)

(Budget constraint)

Page 10: Importance of changing food habits in adapting to heat waves: Observations from private adaptation cost estimates Saudamini Das, 1.Institute of Economic

Equilibrium under heat waves

)()()(

2

1

22

11)(

1

2

1

*

workhouserest

pwpcZhw

ZU

ZU

TT

Situation 1: T = T*, )( 11 Zhl

:

*

)( 11 TTc

Zhl

Situation 2: T >T*, *

)( 11TTcZhl

:

2

1&Z

Z

MUMU

112

1& withMUMU

Z

Z

Situation 3: T<T* 222

1& withMUMU

Z

Z

Page 11: Importance of changing food habits in adapting to heat waves: Observations from private adaptation cost estimates Saudamini Das, 1.Institute of Economic

Time allocation

• Let time allocation be

--- l1τ, l2τ, and l3τ on a normal day with temp Tτ

--- l1, l2, l3 on a heat wave day with temp T and T>Tτ

• Then, we expect --- l1 > l1τ, --- l2 < l2τ, and --- l3 ≤ l3τ

as l1τ+ l2τ+l3τ= l1+ l2+ l3.

• Examine

332211 ,, llandllll

to measure heat wave effect on labor supply

Page 12: Importance of changing food habits in adapting to heat waves: Observations from private adaptation cost estimates Saudamini Das, 1.Institute of Economic

Annualise expenditure on consumer durables

])1(

11[

*

n

ii

r

rPA

A is annualised value, P is market price of ith asset,n is life span and r is rate of interest

Page 13: Importance of changing food habits in adapting to heat waves: Observations from private adaptation cost estimates Saudamini Das, 1.Institute of Economic

Sampling• Purposive random sampling • 15 workers --- 10 different types of work in open environment -- 2

cities in India

• Response on labour allocation are elicited indirectly through recall ---- ‘what activities you did during 7AM to 9AM today (yesterday) vs. what

activities you did during 7AM to 9AM on the heat wave day’

• Collect information on activities engaged during each 2 hours in between 7AM to 11PM.

• Put activities into 3 category: rest, family work, and work.

Page 14: Importance of changing food habits in adapting to heat waves: Observations from private adaptation cost estimates Saudamini Das, 1.Institute of Economic

Study area

Page 15: Importance of changing food habits in adapting to heat waves: Observations from private adaptation cost estimates Saudamini Das, 1.Institute of Economic

Sample features

020406080

100120140160180200

Less than20

20 - 40 40 - 60 60 - 80 Eighty orMore

Education level

15.72

27.7647.83

5.69 3.01

IlliteratePrimaryMatriculateGraduatePost graduate

Occupation

Vegetable/Fruit Seller

Cobbler

Construction Worker

Coolie (Manual Labour in Transport or Other sectors)

Rickshaw/Trolley Drivers

Auto Driver

Taxi Driver

Mobile marketing and Sales executive

Vendors (Mobile sellers of Household items in trolleys)

Owners & workers in open retail enterprises (Temp Stall)

Age groups

Annual Income

0.010.020.030.040.050.060.0

Less than10000

10000 -20000

20000 -50000

50000 -100000

100000 - 300000

Above300000

Income range

Freq

uenc

y(%

)

Males:94%; Hindus: 84%; Gereral:18%; SC: 30%; OBC:43%

Page 16: Importance of changing food habits in adapting to heat waves: Observations from private adaptation cost estimates Saudamini Das, 1.Institute of Economic

Awareness campaign and behaviour

Type of behaviour change Number of AdaptersDrink more water 0.73

Eat cucumber and onion 0.65

Carry water bottle when travelling

0.64

Carry umbrella 0.63

Wear light colour cloths 0.26

Wear shows/slippers 0.21

• Aware of dos and don’ts : 0.99

Page 17: Importance of changing food habits in adapting to heat waves: Observations from private adaptation cost estimates Saudamini Das, 1.Institute of Economic

Health effect

Type of health problems Reported sufferingRise_Body_Temp 0.15Respiration_Prob 0.08Unconscious 0.05Blurred_Vision 0.08Nausea 0.11Body_Ache 0.04Tiredness 0.12Hospitalised_heat_attack 0.15

Page 18: Importance of changing food habits in adapting to heat waves: Observations from private adaptation cost estimates Saudamini Das, 1.Institute of Economic

Average effect on time allocationOccupation Change in average time allocation during a

heat wave day compared to normal summer day (in hours)

Regular outside work

House work Rest

Vegetable/Fruit Seller -0.73 -0.22 0.95

Cobbler -1.23 -0.47 1.70Construction Worker -1.54 -0.38 1.93

Coolie (Manual Labour in Transport or Other sectors)

-1.62 -1.02 2.64

Rickshaw/Trolley Drivers -1.65 -0.52 2.17

Auto Driver -1.06 -0.21 1.28Taxi Driver -1.52 -0.68 2.2

Mobile marketing and Sales executive -0.74 -0.37 1.1

Vendors (Mobile sellers of Household items in trolleys)

-1.26 -0.18 1.44

Owners & workers in open retail enterprises (Temp Stall)

-0.53 -0.58 1.11

Average change -1.19 -0.46 1.65

Page 19: Importance of changing food habits in adapting to heat waves: Observations from private adaptation cost estimates Saudamini Das, 1.Institute of Economic

SURE Results

Explanatory Variables

Dep var: Ratio of time allocated to

work on a heat wave day compared

to a normal summer day

Dep var: Ratio of time allocated

to rest on a heat wave day

compared to a normal summer day

City 0.123*** (6.00) -0.006 (0.08)

occu_vendor 0.031 (1.12) -0.033 (0.34)

occu_manual_work -0.079*** (3.36) 0.214*** (2.62)

occu_driver -0.031 (1.17) 0.197** (2.15)

distance_workplace -0.004* (1.74) -0.002 (0.84)

workplace_congested -0.024 (1.2) 0.001 (0.98)

workplace_tree -0.019 (0.88) 0.142** (1.89)

profession_change_heat 0.096* (1.75) -0.325* (1.69)

illiterate 0.012 (0.49) -0.012 (0.14)

hospitalized_heat_attack -0.014 (0.59) 0.123 (1.47)

health_problem -0.031* (1.68) -0.092 (1.42)

income_medium -0.095** (2.58) 0.191 (1.49)

income_high -0.108** (2.42) 0.132 (0.85)

_cons 0.989*** (21.91) 1.023*** (6.52)

RMSE 0.14 0.49

R 2 0.2611 0.10

Page 20: Importance of changing food habits in adapting to heat waves: Observations from private adaptation cost estimates Saudamini Das, 1.Institute of Economic

Extra expenditure on food and other non-durablesOccupation Average approximate

annual income (in INR)a

Average increase in monthly routine expenditure due to heat wave days (in

INR)b

Vegetable/Fruit Seller 63667 810 (0.15)Cobbler 57903 597 (0.12)

Construction Worker 47667 450 (0.11)Coolie (Manual Labour in Transport or

Other sectors)59828 597 (0.12)

Rickshaw/Trolley Drivers 57833 557 (0.12)Auto Driver 110161 694 (0.08)Taxi Driver 86333 612 (0.09)

Mobile marketing and Sales executive 200000 693 (0.04)

Vendors (Mobile sellers of Household items in trolleys)

78036 339 (0.05)

Owners & workers in open retail enterprises (Temp Stall)

95323 639 (0.08)

Average for all groups 85833 601 (0.08)Average extra expenditure per heat wave day 100 (0.014)

Page 21: Importance of changing food habits in adapting to heat waves: Observations from private adaptation cost estimates Saudamini Das, 1.Institute of Economic

Expenditure on durable goodsType of heat wave averted activities at home

Sample proportion who reported to have undertaken these changes due to heat waves

Possible life span (years)

Annual average cost of the activity using Eq. 10 (in INR)

Wipe floor repeatedly using cooling ingredients

0.33 1 320

Put thick layers of paddy straw on roof to stop transmission of heat

0.54 1 482

Use thick curtains 0.14 5 126

Insulate walls with paint, mud 0.017 10 152

Purchase fans 0.92 15 151.29

Purchase Air/water cooler 0.05 10 631

Purchase fridge 0.04 20 729.47

Purchase Air Conditioner 0.003 20 1833.34

Weighted annual average for a sample household

592

Page 22: Importance of changing food habits in adapting to heat waves: Observations from private adaptation cost estimates Saudamini Das, 1.Institute of Economic

Private cost of adaptation per heat wave day

Extra expenditures

Non-durable (food and electricity)

Rs100 ($1.7) 51%

Durable Rs49 ($0.8) 25%

Work time loss Rs46 ($0.7) 24%

Total loss / hw day Rs195 ($3.25)

• Rs25.12 million per heat wave day or Rs3.01billion per annum at 2012-13 prices for the state of Odisha

Page 23: Importance of changing food habits in adapting to heat waves: Observations from private adaptation cost estimates Saudamini Das, 1.Institute of Economic

Policy

• So far government programs have targeted reducing the health effect (both mortality and morbidity), economic loss or just work time loss is not yet recognised.

• Income supplement with Awareness campaign

• Subsidized electricity

• Some subsidy on food commonly consumed during summer

Page 24: Importance of changing food habits in adapting to heat waves: Observations from private adaptation cost estimates Saudamini Das, 1.Institute of Economic

THANKS