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Crop-Livestock Inter-linkages and Climate Change Implications for Ethiopia’s Agriculture: A Ricardian Approach

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  • Gebreegziabher, Zenebe
  • Mekonnen, Alemu
  • Deribe, Rahel
  • Abera, Samuel
  • Kassahun, Meseret Molla
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    Abstract

    There have been few attempts to look into the economic impacts of climate change in the context of Ethiopia. Although mixed crop-livestock farming is a dominant farming style, most of the studies on climate change, at least in the context of Ethiopia, have emphasized only crop agriculture and disregarded the role of livestock. In this research, we analyze climate change and agricultural productivity in Ethiopia in its broader sense, inclusive of livestock production. We employ a Ricardian approach, estimating three modified versions of the Ricardian model. Results show that warmer temperature is beneficial to livestock agriculture, while it is harmful to the Ethiopian economy from the crop agriculture point of view. Moreover, increasing/decreasing rainfall associated with climate change is damaging to both agricultural activities.

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    Bibliographic Info

    Paper provided by Resources For the Future in its series Discussion Papers with number dp-13-14-efd.

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    Date of creation: 14 Dec 2013
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    Handle: RePEc:rff:dpaper:dp-13-14-efd

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    Keywords: crop-livestock inter-linkages; agriculture; climate change; Ricardian model; Ethiopia;

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    1. K.S. Kavi Kumar, 2009. "Climate Sensitivity Of Indian Agriculture," Development Economics Working Papers 22939, East Asian Bureau of Economic Research.
    2. Marcel Fafchamps & Chris Udry & Katherine Czukas, . "Drought and Saving in West Africa: Are Livestock a Buffer Stock?," Working Papers 97013, Stanford University, Department of Economics.
    3. Mendelsohn, Robert & Dinar, Ariel, 1999. "Climate Change, Agriculture, and Developing Countries: Does Adaptation Matter?," World Bank Research Observer, World Bank Group, vol. 14(2), pages 277-93, August.
    4. Molua, Ernest L. & Lambi, Cornelius M., 2007. "The economic impact of climate change on agriculture in Cameroon," Policy Research Working Paper Series 4364, The World Bank.
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