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A Dynamic General Equilibrium Analysis of Adaptation to Climate Change in Ethiopia

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  • Robinson, Sherman
  • Willenbockel, Dirk

Abstract

This study links a multi-sectoral regionalized dynamic computable general equilibrium model of Ethiopia with a system of country-specific hydrology, crop, road and hydropower engineering models to simulate the economic impacts of climate change towards 2050. In the absence of externally funded policy-driven adaptation investments Ethiopiaâ..s GDP in the 2040s will be up to 10 percent below the counterfactual no-climate change baseline. Suitably scaled adaptation measures could restore aggregate welfare to baseline levels at a cost that is substantially lower than the welfare losses due to climate change.

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File URL: http://www.wider.unu.edu/stc/repec/pdfs/wp2011/wp2011-089.pdf
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Bibliographic Info

Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper WP2011/89.

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Length: 19
Date of creation: 2011
Date of revision:
Handle: RePEc:unu:wpaper:wp2011-89

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Keywords: CGE analysis; global warming; growth; adaptation costs; development;

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References

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  1. World Bank, 2010. "Economics of Adaptation to Climate Change : Synthesis Report," World Bank Other Operational Studies 12750, The World Bank.
  2. Samuel Fankhauser & Richard S.J. Tol, 2001. "On Climate Change And Economic Growth," Working Papers FNU-10, Research unit Sustainability and Global Change, Hamburg University, revised Jun 2002.
  3. Robinson, Sherman & Willenbockel, Dirk & Ahmed, Hashim & Dorosh, Paul, 2010. "Implications of food production and price shocks for household welfare in Ethiopia: a general equilibrium analysis," MPRA Paper 39533, University Library of Munich, Germany.
  4. Robinson, Sherman & Yunez-Naude, Antonio & Hinojosa-Ojeda, Raul & Lewis, Jeffrey D. & Devarajan, Shantayanan, 1999. "From stylized to applied models:: Building multisector CGE models for policy analysis," The North American Journal of Economics and Finance, Elsevier, vol. 10(1), pages 5-38.
  5. Arndt, Channing & Strzepeck, Kenneth & Tarp, Finn & Thurlow, James & Fant, Charles & Wright, Len, 2010. "Adapting to Climate Change An Integrated Biophysical and Economic Assessment for Mozambique," Working Paper Series wp2010-101, World Institute for Development Economic Research (UNU-WIDER).
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Cited by:
  1. Headey, Derek & Taffesse, Alemayehu Seyoum & You, Liangzhi, 2014. "Diversification and Development in Pastoralist Ethiopia," World Development, Elsevier, vol. 56(C), pages 200-213.
  2. Block, Paul, 2011. "Power Ahead: Meeting Ethiopiaâ..s Energy Needs under a Changing Climate," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  3. Elshennawy, Abeer & Robinson, Sherman & Willenbockel, Dirk, 2013. "Climate Change and Economic Growth: An Intertemporal General Equilibrium Analysis for Egypt," MPRA Paper 47703, University Library of Munich, Germany.

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