Top PDF The Costs of Climate Change Adaptation in Middle-income Countries

The Costs of Climate Change Adaptation in Middle-income Countries

The Costs of Climate Change Adaptation in Middle-income Countries

While potential costs and tracked spending on adaptation to climate change in middle- income countries (MICs) are difficult to measure, there is wide agreement that current spending on adaption is highly inadequate (Buchner et al, 2019; PCC, 2018; UNEP, 2016; Yeo, 2019). Climate finance has been increasing, both from domestic sources and through international transfers, but spending on climate change mitigation through renewable energy, energy efficiency and sustainable transport makes up the vast majority of investments (Buchner et al., 2019; Yeo, 2019). Given that MICs are predicted to be among the most vulnerable to future climate shocks and also to high poverty rates (Shepherd et al, 2013), it will be critical to fill this financing gap in order to address these vulnerabilities. There is great interest in leveraging public finance to increase private sector investments in adaptation in MICs but, so far, private investment in adaptation investment has been minimal (Buchner et al, 2019; Yeo, 2019). This report begins with a summary of available estimates of climate adaption finance needs and tracked spending in MICs. Due to data and standardisation limitations, it is not possible to accurately measure total costs for adaptation in MICs, therefore this report goes on to briefly explore some of the potential human and economic costs of failing to invest. Evidence limitations also means that it is not possible to determine the most effective adaptation finance modalities for MICs, therefore this report concludes with a short overview of cross-cutting themes that are widely discussed in the literature with some support from empirical evidence.
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Comparative Costs of Different Renal Replacement Therapies in Lower Middle Income Countries on the Example of Georgia

Comparative Costs of Different Renal Replacement Therapies in Lower Middle Income Countries on the Example of Georgia

End-Stage Renal Disease (ESRD) represents one of the most challenging social and medical prob- lems mainly due to substantial treatment-associated costs. The chronic nature of the disease needs expensive continuous care that majority of the patients cannot afford. Therefore, in many countries expenses associated with the ESRD treatment is paid by state government. These treat- ment options include: hemodialysis, peritoneal dialysis and kidney transplantation. Multiple stu- dies have been conducted throughout the world to assess cost-effectiveness of these treatment modalities. The studies suggest that kidney transplantation not only reduces mortality and mor- bidity but improves a quality of life of ESRD patients. Furthermore, it is the most cost-effective treatment for the ESRD at least in high-income countries. The goal of our study was to determine whether above-mentioned is true for lower middle income countries, where the cost of the ESRD treatment is substantially lower. Despite the low dialysis costs, transplantation remains the cheap- est form of renal replacement therapy RRT in lower income countries like Georgia. Our results reveal, that kidney transplantation is most expensive modality of Renal Replacement Therapy (RRT) at month 1, but count of costs reveals that after the 10 th month of treatment, the cumulative
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Coping with healthcare costs for chronic illness in low-income and middle-income countries : A systematic literature review

Coping with healthcare costs for chronic illness in low-income and middle-income countries : A systematic literature review

or family, borrowing from someone else, and ‘other’). Those surveys, and similar others, have facilitated important multicountry research on the prevalence of detrimental coping strategies. 6 43 57 However, our review has shown that households with chronic illnesses employ a range of strategies not traditionally captured in those metrics, for example, taking children out of school. The positive impact that childhood education can have on a household’s long-term economic prospects, and the detrimental impact that low education has on the economic development of societies, generally, are well established. 58–60 Completion of primary and secondary education for all children is another SDG target, 1 and the WB’s Human Capital programme aims to invest in young people’s education and skill-building as a means to reduce poverty and inequality. 61 In countries where primary and secondary education are not provided freely, competing demands for household financial resources, such as debt incurred from OOP payments for health- care, may compromise progress towards these goals.
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Vulnerability Assessment and Adaptation Costs of Agriculture to Climate Change in the Lima Region, Peru

Vulnerability Assessment and Adaptation Costs of Agriculture to Climate Change in the Lima Region, Peru

Abstract—In the face of climate change, the characteristics of vulnerable sectors generate information on adaptation strategies, but the most important challenge is to assess the adaptation costs. This paper assesses climatic vulnerability in order to estimate the costs of agricultural adaptation to climate change in the region of Lima, Peru. Five indices of crop vulnerability to climate change impacts (from low to severe) were designed based on agricultural and water monitoring and surveys of farmers conducted during on-site workshops. The costs of two main climate change adaptation measures (base year 2017) were estimated, for the period 2017-2030: 1) implementation of contingency plans for water protection in the basins of Lima region (US $ 26.63 million), and 2) climate change adaptation for one crop (US $ 652.18 equivalent annual cost per hectare). Standardizing baselines to assess "business as usual" costs of climate change, without adaptation measures for the agriculture sector, is encouraged. This study allows the prediction of agricultural vulnerability until 2030, and at the same time it is preventive for farmers in order to make decisions about climate change in the coming years.
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Exploring the Economic Case for Early Investment in Climate Change Mitigation in Middle-income Countries: A case study of Johor Bahru, Malaysia

Exploring the Economic Case for Early Investment in Climate Change Mitigation in Middle-income Countries: A case study of Johor Bahru, Malaysia

These policy tools are not always available to local gov- ernments, which have limited resources and powers. However, municipal authorities have considerable capacity to promote more ef fi cient forms of urban development by increasing the stringency of planning and approval pro- cesses, enforcing energy regulation and establishing public – private partnerships for large infrastructure projects in the transport and waste sectors. Municipal authorities can also promote energy ef fi ciency by establishing green public procurement policies or by acting as the anchor client for building retro fi t programmes. There is evidence that this project-based approach may entail fewer trans- action costs and yield more signi fi cant co-bene fi ts than, say, national emission trading schemes in the context of non-Annex I countries (Knopf et al., 2010; Spaargaren & Mol, 2013). The presence of a strong economic case for low-carbon investment provides a compelling incentive to make the necessary regulations and investments at both a national and sub-national level, and it is to be hoped that these will in turn help cities to achieve real emission reductions.
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Benefits of Organic Agriculture as a Climate Change Adaptation and Mitigation Strategy in Developing Countries

Benefits of Organic Agriculture as a Climate Change Adaptation and Mitigation Strategy in Developing Countries

The Fourth Assessment Report of the IPCC (Inter-governmental Panel on Climate Change), Working Group II (hereafter AR4-WGII), states that “a wide array of adaptation options is available, but more extensive adaptation than is currently occurring is required to reduce vulnerability to future climate change. There are barriers, limits, and costs, but these are not fully understood” (IPCC 2007a, 19). Other important statements of the AR4-WGII include that “vulnerability to climate change can be exacerbated by the presence of other stresses,” that “future vulnerability depends not only on climate change but also on development pathways,” and that “sustainable development can reduce vulnerability to climate change, and climate change could impede nations’ abilities to achieve sustainable development pathways” (IPCC 2007a, 19–20). In general, climate change and variability are a considerable threat to agricultural communities, particularly in lower latitudes. This threat includes the likely increase of extreme weather conditions, increased water stress and drought, and desertification, as well as adverse health effects (extreme heat and increased spread of diarrhoeal and infectious diseases, such as malaria). Adverse effects are likely to multiply if adaptation fails. This may then overstretch many societies’ adaptive capacities, which may lead to destabilization and security risks,
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HEALTH FINANCING REVISITED LOW- AND MIDDLE-INCOME COUNTRIES LOW- AND MIDDLE-INCOME COUNTRIES HIGH-INCOME COUNTRIES HIGH-INCOME COUNTRIES

HEALTH FINANCING REVISITED LOW- AND MIDDLE-INCOME COUNTRIES LOW- AND MIDDLE-INCOME COUNTRIES HIGH-INCOME COUNTRIES HIGH-INCOME COUNTRIES

• Social health insurance. Social health insurance can be an effective way to raise additional resources for health and to reach universal coverage. In particular, by making the financing of health care more transparent and stable, social health insurance may encourage the population to contribute more to the health cov- erage system. But these objectives can be reached at different speeds, depending on the political and socioeconomic characteristics of each country. For many low-income countries, particularly those with stagnant economies and ever growing proportions of workers in the informal sector, these objectives may be unrealistic in the foreseeable future. Therefore, before implementing a social health insurance scheme, a government should examine its suitability for the country’s socioeconomic and political conditions and assess potential problems to determine whether they can be overcome or reduced to the degree needed to ensure that the advantages of social health insurance outweigh its potential drawbacks. This preparatory work may lead to the conclusion that it is appro- priate to proceed with the reform, but it can also lead to a decision to postpone reform until the necessary preconditions are satisfied. Experience also shows that, in its initial stage of development, social health insurance has a tendency to divert resources from the poorer segment of the population to the richer seg- ment. Consequently, countries considering establishment of a social health insurance system should be aware of this side effect and include mechanisms to protect the poor within their system framework. Finally, social health insurance can induce cost escalation, as observed in many countries of the OECD. There- fore, governments wishing to implement social health insurance schemes must design appropriate mechanisms to contain costs.
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Financing health in middle-income countries

Financing health in middle-income countries

The middle-income countries that chose payroll taxes as the primary funding source have a large percentage of their working-age population employed in the formal sector, which constitutes the government’s revenue base (Ensor and Thompson 1998). In Eastern Europe, payroll taxes are the predominant source of funding, financing much of the health care costs in Estonia, the Czech Republic, Hungary, and Slovakia (Langenbrunner 2005). In these countries, state enter- prises and civil service institutions are large formal sector employers and are a reliable source of payroll contributions. In addition, the shift to payroll contribu- tions (away from general revenue-based funding) offered a way for these coun- tries to break with their Soviet-era past and reduce the role of the state. Payroll taxes also play a prominent role in Argentina, Chile, and the Republic of Korea. In Latin America and the Caribbean, labor unions representing a large share of the formal workforce are actively involved in collecting and managing health insur- ance contributions, as seen in Argentina’s Obras Sociales (ILO 2001).
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Challenges and opportunities to the adaptation and mitigation of climate change in developing countries: Review

Challenges and opportunities to the adaptation and mitigation of climate change in developing countries: Review

Developing countries are more vulnerable to climate change than that of developed ones which caused climate change. This is because of the sensitivity of income source (agriculture, which is seasonal production) and lack of different opportunities to tackle climate change in developing countries. Despite their differences, both mitigation and adaptation efforts are necessary due to their synergic effect in order to decrease climate change risks. Adaptation and mitigation are differ from each other; in spatial and temporal scales on which they are effective, their costs and benefits, and the actors and types of policies involved in their implementation. The challenges to climate change adaptation and mitigation in developing countries are explained directly or indirectly by different researchers. However, no researcher gave attention to opportunities to adaptation and mitigation of climate change in developing countries. Consequently, this review is needed to provide information on the importance of emphasizing on the opportunities than challenges to adaptation and mitigation of climate change in developing countries. The building designs, agriculture/food insecurity, low income, deforestation, and conventional solid waste management system are major challenges to climate change adaptation and mitigation in developing countries. However, there are opportunities to climate change adaptation and mitigation in developing countries. The major opportunities are financing for forests (carbon trading) in developing countries, organic agriculture, increase of tree cover outside forests, and presence of better forest coverage in developing countries. So, developing countries should emphasis on their opportunity in order to improve their adaptive and mitigation potential to climate change. This is because; once the climate change occurred, it is better if one gives attention to strategies of coping with climate change and ways to minimize the future negative impact on his or her life than telling stories about climate change impacts.
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REPRESENTATIONS AND ADAPTATION TO CLIMATE CHANGE

REPRESENTATIONS AND ADAPTATION TO CLIMATE CHANGE

maintaining an outdated image data base of the beach at the expense of misrepresenting reality. This strategy can work insofar as there are remnants of the beach, but beach erosion in Playacar is rampant. The second essentialist strategy aimed to control the biophysical reality (i.e., preventing its change) through engineering interventions. This strategy consisted of adaptation measures undertaken by the hoteliers to restore the beach; however, these short-term measures were incapa- ble of going beyond cosmetic alterations. A longer term engineering strategy would have entailed higher economic costs and a set of gov- ernance conditions which are not always in place in lesser economi- cally developed countries. More importantly, beach reconstruction will always present significant limitations in trying to accurately repro- duce a reality akin to essential portrayals based on pristine land- scapes. In fact, Playacar’s hoteliers missed the opportunity to devise new non-essentialist adaptive representational strategies that internal- ized the occurring changes while concurrently selling new forms of recreation activities (e.g., sun bathing in the sea on a natural looking sand bag).
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Climate change: Impact on agriculture and costs of adaptation

Climate change: Impact on agriculture and costs of adaptation

In developing countries, yield declines predominate for most crops without CO 2 fertilization. Irrigated wheat and irrigated rice are especially hard hit. On average, yields in developed countries are affected less than those in developing countries. For a few crops, climate change actually increases developed-country yields. In calculating these projections, the East Asia and Pacific region combines China, which is temperate for the most part, and Southeast Asia, which is tropical. The differential effects of climate change in these two climate zones are concealed. In China, some crops fare reasonably well because higher future temperatures are favorable in locations where current temperatures
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The effects of adaptation to climate change on income of households in rural Ethiopia

The effects of adaptation to climate change on income of households in rural Ethiopia

In the Afar culture, people widely share information and new events by way of traditional communication called Dagu (face to face contact). With the help of get- ting information via Dagu, pastorals and agro-pastorals used to move their livestock to safer areas. Overall, mi- gration for the Afar pastoralists serves as a means to search livestock feed and water, as a strategy to rescue their livestock from unexpected events, as a channel to reach new market opportunities and as a pathway to build social capital with newly contacted people in their destination areas (McPeak et al. 2012). More import- antly, pastoral mobility serves a source of income in areas where crop cultivation has not yet been applied. Recently, reported research findings indicated that pasto- ralists in west and east African countries have continued to respond to climate-related challenges by moving their livestock to better areas (Moritz et al. 2009). In contrary, other research reports suggest that the pastoral mode of life is an outdated system, which is currently in crisis (Markakis 2004) owing to ‘too many people and few livestock ’ , which has created imbalances among humans, livestock and the environment (Sandford 2006).
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A Survey on Adaptation to Climate Change

A Survey on Adaptation to Climate Change

Resources can be expressed as the economic assets, capital resources, financial means, wealth, or poverty, the economic condition of nations and groups. Clearly resource is a determinant of adaptive capacity (Brooks et al., 2005). It is true that developed nations are better prepared to bear the costs of adaptation to climate change impacts and risks than poorer nations. Poverty is directly related to vulnerability and it is a rough indicator of the ability to cope. The poor are among the most vulnerable to famine, malnutrition, and hunger. There is a situation in India in which pastoralist communities are locked into a vulnerable situation in part because of a lack of financial power that would allow them to diversify and engage in other sources of income. At a local level, the highest levels of household vulnerability in coastal area may be characterized by low household incomes in conjunction with poor housing quality and little community organization. Community with higher levels of household income are better able to manage vulnerability through the transfer of flood impacts from health to economic investment and loss. Kelly and Adger (1999) demonstrate the influence of poverty on a region’s coping capacity; poor regions tend to have less diverse and more restricted entitlements and a lack of empowerment to adapt. There is ample evidence that poorer nations and disadvantaged groups within nations are especially vulnerable to disasters.
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Weather Index Insurance and Climate Change: Opportunities and Challenges in Lower Income Countries

Weather Index Insurance and Climate Change: Opportunities and Challenges in Lower Income Countries

prioritising these investments is enhanced by research through risk assessments to estimate what effect climate change impacts may have on local stakeholders. Weather index insurance provides several potential benefits that enhance household adaptation to climate change; however, climate change impacts also create difficulties for pricing weather index insurance. In regions where climate change results in increasing weather risk, insurance prices must also increase, in some cases to an extent that is likely cost- prohibitive to households. Finally, we provide policy recommendations for those interested in supporting insurance market development as a mechanism to facilitate adaptation. Government and donor investments are likely to be most effective in funding risk assessments and market development start-up costs. Government support in the form of premium subsidies where the government pays a fixed portion of total insurance premiums may actually impede adaptation by encouraging households to maintain or increase investments in unsustainable livelihoods. A less distorting structure of ongoing government support is to divide the risk into a moderately severe commercial layer and an extremely severe social layer. Whatever investments governments and donors make to support insurance markets should be carefully considered in light of their opportunity costs as adaptation needs far outweigh current funding levels.
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An Analysis of Adaptation as a Response to Climate Change

An Analysis of Adaptation as a Response to Climate Change

due to adverse health impact is a sure initial loss for the economic system. In the second case, when agents’ preferences change, assigning a positive or negative label to an impact is more difficult. For instance, when, due to warmer climates, oil and gas demand for heating purposes decreases, this cannot be considered straightforwardly a cost or a gain before redistributional effects are analyzed. This said, the larger supply-side impacts in per cent terms concern agricultural markets, whereas labour productivity and land losses to sea-level rise are much smaller. Among demand shifts, the larger relate to household energy consumption: electricity demand for space cooling could increase up to 50% in hot regions depending on the climate scenario; it decreases in the cooler regions like Northern Europe and in CAJANZ this last dominated by Canada effect. Natural gas and oil demand for heating purposes declines everywhere. Highly relevant are also demand changes for market services, driven by redistribution of tourism flows, accompanied by income inflows (outflows) in those regions where climatic attractiveness increases (decreases). The larger beneficiaries are cooler regions, Northern Europe and CAJANZ (this last again dominated by Canada effect) whereas China, East Asia and Middle East experience a loss.
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Adaptation to climate change

Adaptation to climate change

Adaptation finance is meant to be provided over and above traditional development assistance. This additionality creates its own analytical complications (Klein 2010). Conceptually it is possible to design a development project under two different scenarios – with and without climate change – and treat the difference in costs as the incremental cost of adaptation (Agrawala and Fankhauser 2008). Callaway et al. (2006) have piloted this approach for the Berg river basin in the Western Cape. However, the analytical effort to do this is substantial and given the close links between adaptation and development (McGray et al 2007; Collier et al. 2008) the results are indicative at best. Moreover, the two forms of funding are fungible, which means recipient countries will realign their spending decisions to achieve the adaptation – development mix they desire (Eyckmans et al. 2015). These strategic interactions and the political economy of adaptation finance more broadly are still insufficiently understood.
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Towards pro-poor adaptation to climate change in the urban centres of low- and middle-income countries

Towards pro-poor adaptation to climate change in the urban centres of low- and middle-income countries

An important part of building local adaptive capacity is supporting adaptation that serves low- income groups. Here there are good ‘slum and squatter upgrading’ experiences on which to draw, in which, as described above, local governments worked with informal settlements’ inhabitants to provide infrastructure and services and improve housing quality. Equally useful are the many examples of new housing developments undertaken by federations formed by ‘slum’ or ‘shack’ dwellers themselves. Often these have proved to be more effective and less costly than those supported by international agencies. And, where government support has been received, they have demonstrated considerable capacity to ‘go to scale’ (as in India, South Africa, Thailand and Malawi). Some bilateral agencies have developed ways to support both the grassroots-led initiatives and the local government support for them, including DFID and Sida; so too have some international foundations (Mitlin and Satterthwaite 2007). Thus assistance for adaptation to climate change needs to think
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Adaptation to climate change in Bangladesh

Adaptation to climate change in Bangladesh

The idea that adaptive capacity may depend on certain conditions is not out of line with the existing literature. Economic condition is a strong determinant of adaptive capacity (Kates, 2000). It is widely accepted that wealthy nations are better prepared to bear the costs of adaptation to climate change impacts and risks (Burton, Huq, Lim, Pilifosova, & Schipper, 2002; Goklany, 2007). This section adds to the literature by focusing on panel B strategies. It provides support to the view that opting for those strategies is constrained by the availability of certain resources: wealth, education, the size of the household and whether the household has access to electricity. Access to electricity is considered in the literature as a proxy for socio-economic status, and as a way to escape from poverty traps (Chaurey, Ranganathan, & Mohanty, 2004; Kanagawa & Nakata, 2007) through a saving of time, which can be invested in educational and health spending, or in infrastructure such as pumps for irrigating. Wealthier households are more able to afford even slightly more expensive strategies (Reardon & Taylor, 1996). Educated farmers are more able to treat the information about climate hazards and they will be more likely to opt for certain adaptation options (Bryan et al., 2009; Deressa, Hassan, Ringler, Alemu, & Yesuf, 2009). Bigger households have more (labour) resources that can be invested in order to diversify the sources of income. Beyond the fact that it represents also a proxy for poverty, access to electricity is needed to resort to options, such as irrigate, irrigate more, as they require pumping water.
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Adaptation costs for climate change-related cases of diarrhoeal disease, malnutrition, and malaria in 2030

Adaptation costs for climate change-related cases of diarrhoeal disease, malnutrition, and malaria in 2030

Because of the uncertainties in the estimated costs, they should be taken as indicators of the size of the financial needs and not as accurate predictions. The estimates are likely to include both under- and over-estimates of the actual costs. Emerging technologies, along with signifi- cant investments in research and development, are likely to reduce current health burdens over the next 20+ years. On the other hand, the estimated costs were for only three of the health outcomes projected to increase with climate change; and then only a fraction of the burden of malnu- trition was included. According to Caulfied et al. [11], the estimated prevalence of weight-for-age less than -2 SD (a measure of malnutrition) are 18% for Asia and the Pacific; 6% for Eastern Europe and Central Asia, and for Latin America and the Caribbean; 21% for the Middle East and North Africa; 46% in South Asia; 32% in Sub-Saharan Africa; and 2% in high-income countries. In addition, the model used to estimate malnutrition does not take into account new projections that a few degree increase in glo- bal mean temperature may render some areas unsuitable for rainfed agriculture; if this occurs, the short-term health consequences would likely be severe.
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Do Administrative Traditions Matter for Climate Change Adaptation Policy? A Comparative Analysis of 32 High-Income Countries

Do Administrative Traditions Matter for Climate Change Adaptation Policy? A Comparative Analysis of 32 High-Income Countries

There are some limitations in the data and our methods of analysis. First, given that two sources rely on self-reporting, there might be a bias in the types of activi- ties reported and emphasis on positive policy outcomes rather than policy failures. Many authors acknowledge that it is conceptually difficult to distinguish symbolic policies from concrete adaptation outputs in these datasets, which hampers large- scale comparisons (Dupuis & Biesbroek, 2013). However, this is the best available data to date and more refined forms of adaptation tracking are needed to create better metrics for adaptation and allow for detail comparative assessments (Ford, Berrang-Ford, Lesnikowski, Barrera, & Heymann, 2013). Second, the datasets used are combinations of ordinal and categorical variables, which makes it com- plicated to test very refined propositions. Variables treated as continuous in our analyses were in fact continuous constructs, but measured as multiple-category ordinal variables, thus reducing precision and statistical power in our analyses. Comprehensive data for some of our theory-informed hypotheses were nonexis- tent, forcing us to use imperfect proxy variables. Third, our sample size is lim- ited due to various reasons discussed above. This has implications for the tests used as well as robustness of our findings. Fourth and finally, we had to work with poor-quality data and limited sample size, which reduced reliability and validity of our findings and made it difficult to say with confidence whether or not these variables matter. We thus interpret our results with caution and focus on the stabil- ity, reliability, direction, and relative strength of different effects rather than the precision of estimates. We reflect on the implications for interpreting our findings in the discussion section.
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