Aligning development and climate goals: The role of poverty in household mitigation strategies

Motivation: Climate change remains one of the most pressing global challenges, one which is driven largely by human activity. While countries, including Ghana, have made commitments to reduce greenhouse gas emissions, the impacts of global warming are already being felt. For many low-income populations, particularly those facing multiple deprivations, climate action may not be a priority. Understanding how poverty in its various dimensions intersects with household-level climate mitigation is crucial for designing inclusive environmental and development policies. Purpose: This study explores the relationship between multidimensional poverty and climate mitigation behaviours in Ghana. It seeks to answer the following questions: (1) How does multidimensional poverty affect the likelihood of adopting climate mitigation strategies at the household level? (2) Are there gender and locational differences in climate action among poor households?. Approach and Methods: The study uses nationally representative panel data for Ghana. A multidimensional poverty index (MDPI) is constructed based on indicators defined by the Ghana Statistical Service and the Oxford Poverty and Human Development Initiative (OPHI). A correlated random-effects (CRE) probit model is applied to examine the link between poverty and household-level climate mitigation behaviours. Findings: Households headed by males and those in urban areas are more likely to adopt clean, mitigative strategies. In contrast, multidimensional poverty is consistently associated with a lower likelihood of climate mitigation. Deprivation in areas such as health, education and living standards may push climate concerns down household priority lists. However, poor households in urban areas are more likely to engage in climate mitigation than their rural counterparts, suggesting a locational advantage. Policy Implications: Effective climate policies must account for social and spatial inequalities. Integrating poverty reduction with climate action, especially through improved access to basic services, can enhance the adoption of mitigation strategies, ensuring no one is left behind in the climate transition.