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Economic Impact of Climate Change on Crop Production in Ethiopia: Evidence from Cross-section Measures

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  • Temesgen Tadesse Deressa
  • Rashid M. Hassan

Abstract

This study used the Ricardian approach that captures farmer adaptations to varying environmental factors to analyze the impact of climate change on crop farming in Ethiopia. By collecting data from farm households in different agro-ecological zones of the county, net crop revenue per hectare was regressed on climate, household and soil variables. The results show that these variables have a significant impact on the net crop revenue per hectare of farmers under Ethiopian conditions. The seasonal marginal impact analysis indicates that marginally increasing temperature during summer and winter would significantly reduce crop net revenue per hectare whereas marginally increasing precipitation during spring would significantly increase net crop revenue per hectare. Moreover, the net crop revenue impact of predicted climate scenarios from three models (CGM2, HaDCM3 and PCM) for the years 2050 and 2100 indicated that there would be a reduction in crop net revenue per hectare by the years 2050 and 2100. Moreover, the reduction in net revenue per hectare by the year 2100 would be more than the reduction by the year 2050 indicating the damage that climate change would pose increases with time unless this negative impact is abated through adaptation. Additionally, results indicate that the net revenue impact of climate change is not uniformly distributed across the different agro-ecological zones of Ethiopia. Copyright 2009 The author 2009. Published by Oxford University Press on behalf of the Centre for the Study of African Economies. All rights reserved. For permissions, please email: journals.permissions@oxfordjournals.org, Oxford University Press.

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Bibliographic Info

Article provided by Centre for the Study of African Economies (CSAE) in its journal Journal of African Economies.

Volume (Year): 18 (2009)
Issue (Month): 4 (August)
Pages: 529-554

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Handle: RePEc:oup:jafrec:v:18:y:2009:i:4:p:529-554

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Cited by:
  1. Maria Sassi, 2013. "Impact of Climate Change and International Prices Uncertainty on the Sudanese Sorghum Market: A Stochastic Approach," International Advances in Economic Research, Springer, vol. 19(1), pages 19-32, February.
  2. Kandulu, John, 2011. "Assessing the potential for beneficial diversification in rain-fed agricultural enterprises," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 100568, Australian Agricultural and Resource Economics Society.
  3. Salvatore Di Falco & Marcella Veronesi, 2011. "On Adaptation to Climate Change and Risk Exposure in the Nile Basin of Ethiopia," IED Working paper 11-15, IED Institute for Environmental Decisions, ETH Zurich.
  4. Paul Evangelista & Nicholas Young & Jonathan Burnett, 2013. "How will climate change spatially affect agriculture production in Ethiopia? Case studies of important cereal crops," Climatic Change, Springer, vol. 119(3), pages 855-873, August.
  5. Salvatore Di Falco & Marcella Veronesi, 2014. "Managing Environmental Risk in Presence of Climate Change: The Role of Adaptation in the Nile Basin of Ethiopia," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 57(4), pages 553-577, April.
  6. Marcella Veronesi & Salvatore Di Falco, 2012. "How Can African Agriculture Adapt to Climate Change? A Counterfactual Analysis from Ethiopia," Working Papers 14/2012, University of Verona, Department of Economics.
  7. Thapa, Sridhar & Joshi, Ganesh Raj, 2010. "A Ricardian analysis of the climate change impact on Nepalese agriculture," MPRA Paper 29785, University Library of Munich, Germany, revised Feb 2011.
  8. Temesgen Tadesse Deressa, 2011. "Effects of climatic conditions and agro-ecological settings on the productive efficiencies of small-holder farmers in Ethopia," Working Papers 223, Economic Research Southern Africa.
  9. Alejandro Lopez-Feldman, 2013. "Climate change, agriculture, and poverty: A household level analysis for rural Mexico," Economics Bulletin, AccessEcon, vol. 33(2), pages 1126-1139.
  10. Kelbore, Zerihun Getachew, 2012. "An Analysis of the Impacts of Climate Change on Crop Yield and Yield Variability in Ethiopia," MPRA Paper 49466, University Library of Munich, Germany.
  11. Julius Kotir, 2011. "Climate change and variability in Sub-Saharan Africa: a review of current and future trends and impacts on agriculture and food security," Environment, Development and Sustainability, Springer, vol. 13(3), pages 587-605, June.
  12. Shreekant Gupta & Partha Sen & Suchita Srinivasan, 2012. "Impact of Climate Change on the Indian Economy-Evidence from Foodgrain Yields," Working papers 218, Centre for Development Economics, Delhi School of Economics.
  13. Gebreegziabher, Zenebe & Stage, Jesper & Mekonnen, Alemu & Alemu, Atlaw, 2011. "Climate Change and the Ethiopian Economy: A Computable General Equilibrium Analysis," Discussion Papers dp-11-09-efd, Resources For the Future.

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