Note: GDP adjusted by PPP constant 2017 international currency of most recent year survey. Monthly average per capita income adjusted by PPP constant 2017 international currency.

Source: Own elaboration and World Bank’s World Development Indicators.

# **5 Conclusions**

<mark>This study provides a comprehensive analysis of vulnerability to poverty in the Latin America and the Caribbean region. The assessment is based on household-level data from the</mark> SEDLA <mark>C database, along with various natural hazards data sources. The study simplifies the climate disaster risk concept by reducing dimensions and treating it as a type of covariate risk that can push households into poverty. The results show that t</mark> he incidence of <mark>vulnerability to poverty is notably higher in Guatemala and Honduras, where most of the households are poverty-induced, followed by Colombia and Peru. Moreover, when population adjustments are considered, we find some heterogeneities. Meanwhile, in Guatemala and Honduras, more than 750 and 690 people per 1,000 population are vulnerable, respectively (either by the expected mean – poverty-induced- or the expected variance – risk-induced); when the results focus on</mark> climate <mark>hazards risk (CRI), Argentina and Panama have a higher proportion of vulnerable household covariate risk-induced.</mark> <mark>Overall, the study estimates that approximately 184 million people are vulnerable to poverty. Of those, around 109.5 million are PI, 14.5 million are induced by CRI and 60 million are IRI. Among the sources of risk, idiosyncratic risk is consistently more prominent than climate risk across all countries. However, when the total climate</mark> ris <mark>k effects through variance are considered, 8 percent of people in the region that are not PI or IRI are vulnerable to poverty. In addition, bi-maps enable the identification of provinces with a higher incidence of vulnerability to poverty, along with the districts with high natural hazards. They provide evidence for policy makers to start designing appropriate policies and strategies to mitigate the impact of</mark> climate <mark>hazards on the most vulnerable populations. Finally, the study highlights the need to address the indirect effects of climate risk in the region, which might be more closely associated with household resilience.</mark>

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