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How Can African Agriculture Adapt to Climate Change? A Counterfactual Analysis from Ethiopia

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  • Marcella Veronesi

    ()
    (Department of Economics (University of Verona))

  • Salvatore Di Falco

    ()
    (London School of Economics and Political Science)

Abstract

We analyze the impact of different adaptation strategies on crop net revenues in the Nile Basin of Ethiopia. We estimate a multinomial endogenous switching regression model of climate change adaptation and crop net revenues and implement a counterfactual analysis. Households data are combined with spatial climate data. We find that adaptation to climate change based upon a portfolio of strategies significantly increases farm net revenues. Changing crop varieties has a positive and significant impact on net revenues when is coupled with water conservation strategies or soil conservation strategies but not when implemented in isolation.

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Bibliographic Info

Paper provided by University of Verona, Department of Economics in its series Working Papers with number 14/2012.

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Date of creation: Mar 2012
Date of revision:
Publication status: Published in Land Economics 89(4):743-766
Handle: RePEc:ver:wpaper:14/2012

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Keywords: adaptation; climate change; endogenous switching; Ethiopia; net revenues; strategies;

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  1. Alemu Mekonnen, 2009. "Tenure Security, Resource Endowments, and Tree Growing: Evidence from the Amhara Region of Ethiopia," Land Economics, University of Wisconsin Press, vol. 85(2), pages 292-307.
  2. Seo, S. Niggol & Mendelsohn, Robert, 2008. "An analysis of crop choice: Adapting to climate change in South American farms," Ecological Economics, Elsevier, vol. 67(1), pages 109-116, August.
  3. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
  4. François Bourguignon & Martin Fournier & Marc Gurgand, 2004. "Selection Bias Corrections Based on the Multinomial Logit Model: Monte-Carlo Comparisons," DELTA Working Papers 2004-20, DELTA (Ecole normale supérieure).
  5. Jinxia Wang & Robert Mendelsohn & Ariel Dinar & Jikun Huang, 2010. "How Chinese Farmers Change Crop Choice To Adapt To Climate Change," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 1(03), pages 167-185.
  6. Robert Mendelsohn & Ariel Dinar, 2003. "Climate, Water, and Agriculture," Land Economics, University of Wisconsin Press, vol. 79(3), pages 328-341.
  7. Udry, Christopher, 1996. "Gender, Agricultural Production, and the Theory of the Household," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 1010-46, October.
  8. Deressa, Temesgen & Hassan, R. M. & Alemu, Tekie & Yesuf, Mahmud & Ringler, Claudia, 2008. "Analyzing the determinants of farmers' choice of adaptation methods and perceptions of climate change in the Nile Basin of Ethiopia:," IFPRI discussion papers 798, International Food Policy Research Institute (IFPRI).
  9. Temesgen Tadesse Deressa & Rashid M. Hassan, 2009. "Economic Impact of Climate Change on Crop Production in Ethiopia: Evidence from Cross-section Measures," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 18(4), pages 529-554, August.
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Cited by:
  1. Stefania Lovo & Marcella Veronesi, 2014. "Crop Diversification and Child Health: Empirical Evidence From Tanzania," Working Papers 08/2014, University of Verona, Department of Economics.
  2. Cook, Aaron M. & Ricker-Gilbert, Jacob E. & Sesmero, Juan P., 2013. "How do African households adapt to climate change? Evidence from Malawi," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150507, Agricultural and Applied Economics Association.
  3. 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.
  4. Di Falco, Salvatore & Veronesi, Marcella, 2012. "Managing Environmental Risk in Presence of Climate Change: The Role of Adaptation in the Nile basin of Ethiopia," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 134775, Agricultural Economics Society.
  5. Mintewab Bezabih & Salvatore Di Falco & Alemu Mekonnen, 2014. "Is it the climate or the weather? Differential economic impacts of climatic factors in Ethiopia," Grantham Research Institute on Climate Change and the Environment Working Papers 148, Grantham Research Institute on Climate Change and the Environment.
  6. Waage Skjeflo, Sofie & Bruvik Westberg, Nina, 2014. "Learning the hard way? Adapting to climate risk in Tanzania," CLTS Working Papers 4/14, Centre for Land Tenure Studies, Norwegian University of Life Sciences.

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