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Economy-wide effects of climate-smart agriculture in Ethiopia

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  • Komarek, A.
  • Thurlow, J.
  • De Pinto, A.
  • Kwon, H.-Y.
  • Koo, J.

Abstract

Promoting climate-smart agriculture (CSA) is now a common policy in many developing countries. Yet researchers rarely quantify CSA s economic value as opposed to traditional input-intensive technologies, particularly CSA s contribution to economy-wide indicators, such as economic growth and poverty reduction. This study applied a bioeconomic modeling approach to quantify the economy-wide effects of promoting CSA and traditional input-intensive technologies (fertilizer and irrigation) in Ethiopian cereal systems. We combined a cropping systems model with a computable general equilibrium model that was linked to a poverty module. We simulated the economy-wide effects for 40-year sequences of variable climate with and without climate change. Our results suggest that adopting CSA technologies (related to no tillage and integrated soil fertility management) on a quarter of Ethiopia s maize and wheat land (approximately 900,000 hectares) would increase national gross domestic product (GDP) by an average US $146 million annually and assist 367,000 people to move out of poverty. This benefit exceeds the GDP gain of US $95 million and poverty reduction of 105,000 people expected from a similarly-sized expansion of fertilizer and irrigation. Results also suggest that the gains from CSA are greater with climate change and that CSA improves stocks of soil organic carbon. Acknowledgement : The United Nations Development Programme funded part of this study. We thank Richard D. Robertson for providing the climate data.

Suggested Citation

  • Komarek, A. & Thurlow, J. & De Pinto, A. & Kwon, H.-Y. & Koo, J., 2018. "Economy-wide effects of climate-smart agriculture in Ethiopia," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277095, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:277095
    DOI: 10.22004/ag.econ.277095
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