Climate Change and Household Consumption Expenditure Growth in Some Selected African Countries: a Generalized Method of Moment (GMM) Approach

Household consumption expenditure in African nation is constrained with falling income, economic crisis and poverty. Africa is located around the tropic which makes the continent vulnerable to climate change. The rising pattern of poverty precipitated by falling household consumption is caused by climate change due to the nature economic activities of African nation. One of the economic agenda of African nation is to attain sustainable development goal which is constrained by poor household expenditure, malnourishment and poverty. The bulk of African population is engaged in occupation influenced by climatic factors. It is in view of this that this study investigates the effect of climate change on household consumption expenditure. This study uses a panel data set from fifty-four (54) African countries span 2013 to 2022. The technique of estimation employed is the Generalized Method of Moment (GMM). The results of the result of study indicates that there is a short run relationship. The lag value of household consumption expenditure at first and second lag is statistically significant and is best instruments to be included in the model. The coefficient Co2 emission has a positive and statistical significant effect on household consumption. Temperature, economic globalization and social globalization have a negative but non significant effect on household consumption expenditure. Political globalization has a positive but non significant effect on household consumption expenditure in African countries. The increase adequate finance and preparedness to address issues of climate change to reduce the surge effect on household consumption would make adaptation strategy possible