The Household Economy Approach. Managing the impact of climate change on poverty and food security in developing countries

Climate change is expected to have severe effects on the populations of developing countries because many of these depend heavily on agriculture for income, have large impoverished rural populations which rely on agriculture for subsistence, and are financially and technically least equipped to adapt to changing conditions. Planning to target measures to support adaptation to reduce the impact of climate change on poverty and food insecurity requires methods of identifying vulnerable households. This paper describes an established approach to vulnerability assessment, the ‘Household Economy Approach’ (HEA) and its potential application to the management of climate change in developing countries. The HEA is widely used by Governments and others, chiefly in Africa, for the assessment of household vulnerability to poverty and food security. HEA uses a model based on Amartya Sen’s entitlement theory and detailed social and economic data to simulate the impact of weather related, price, policy and other shocks on household income and food access, to provide information for decision making. In developing countries climate change will be experienced in terms of increased climate variability and an increased frequency of extreme events. HEA provides a way of managing the effects of year to year shocks to prevent impoverishment and the erosion of household resilience. It also provides the information needed to develop scenarios to support the design of policies to support longer term adaptation. HEA data has already been collected for large areas of Africa.