Cash Transfers and Climate-resilient Development: Evidence from Zambia’s Child Grant Programme

This study investigates whether cash transfers enable households facing weather and other negative income shocks to avoid adverse coping strategies that can lead to poverty traps. While cash transfers are not routinely considered in the policy discourse concerning climate adaptation programming, because ex-ante transfers enable households to avoid negative coping strategies and even increase food consumption in the face of covariate weather shocks, cash transfers offer a sound approach for building climate-resilience amongst the world’s most vulnerable and facilitating their “autonomous adaptation” to a changing environment. Cash also enables households to productively cope with the many other idiosyncratic shocks the rural poor routinely face.