IDEAS home Printed from https://ideas.repec.org/a/spr/endesu/v16y2014i2p393-414.html

Climate impact on agroeconomy in semiarid region of Armenia

Author

Listed:
  • Ani Melkonyan

  • Malcolm Asadoorian

Abstract

With 21 % of gross domestic product (GDP) in agricultural sector and having consistently experienced natural disasters (e.g., drought, flood), Armenia is very vulnerable to climate and its change. Given the fact that 63 % of the entire land is planted with grains, this study primarily focuses on the market for wheat flour and bread. Economic welfare loss due to drought episodes is calculated using the economic data integrated with climate measures. Economic data are utilized for the period 1995–2011 (obtained from Statistical Office of Armenia) and specifically include the quantity produced and consumed of wheat flour and bread combined with mean prices, population income, GDP in the agricultural sector, GDP in the planting sector, and governmental expenditure on subsidies. Climate data include temperature and precipitation during the period 1966–2011 (obtained from National Hydrometeorological Service of Armenia). The analysis includes three main components. The first utilizes a market framework that analyzes the impact of climate on equilibrium prices and quantities as well as trade and tax effects. The second employs a logarithmic utility function to estimate the effective insurance policy for the agricultural sector using risk management strategies. Lastly, a macroeconomic model has been developed to assess the efficient sum of governmental expenditure on subsidies and irrigation during the drought episodes and during the mean climatic conditions. All three parts of the study are developed for the first time. Copyright Springer Science+Business Media Dordrecht 2014

Suggested Citation

  • Ani Melkonyan & Malcolm Asadoorian, 2014. "Climate impact on agroeconomy in semiarid region of Armenia," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 16(2), pages 393-414, April.
    • Handle: RePEc:spr:endesu:v:16:y:2014:i:2:p:393-414
    DOI: 10.1007/s10668-013-9483-8
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10668-013-9483-8
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10668-013-9483-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Suleiman Abrar & Oliver Morrissey & Tony Rayner, 2004. "Crop‐Level Supply Response by Agro‐Climatic Region in Ethiopia," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(2), pages 289-311, July.
    2. Jamie Sanderson & Sardar M. N. Islam, 2007. "Climate Change and Economic Development," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-59012-0, December.
    3. Chow, Gregory C., 1997. "Dynamic Economics: Optimization by the Lagrange Method," OUP Catalogue, Oxford University Press, number 9780195101928.
    4. Gunnar Breustedt & Raushan Bokusheva & Olaf Heidelbach, 2008. "Evaluating the Potential of Index Insurance Schemes to Reduce Crop Yield Risk in an Arid Region," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(2), pages 312-328, June.
    5. Antoine Leblois & Philippe Quirion, 2013. "Agricultural insurances based on meteorological indices: realizations, methods and research challenges," Post-Print hal-00656778, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. MOHSEN, Adel Shakeeb & CHUA, Soo Y. & CHE SAB, Che Normee, . "Determinants Of Agricultural Output In Syria," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 19(01), pages 1-9.
    2. Simin Mehdipour & Nouzar Nakhaee & Farzaneh Zolala & Maryam Okhovati & Afsar Foroud & Ali Akbar Haghdoost, 2022. "A systematized review exploring the map of publications on the health impacts of drought," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 113(1), pages 35-62, August.
    3. Olimjon Saidmamatov & Nicolas Tetreault & Dilmurad Bekjanov & Elbek Khodjaniyazov & Ergash Ibadullaev & Yuldoshboy Sobirov & Lugas Raka Adrianto, 2023. "The Nexus between Agriculture, Water, Energy and Environmental Degradation in Central Asia—Empirical Evidence Using Panel Data Models," Energies, MDPI, vol. 16(7), pages 1-20, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Barratt, Jonathan & Kath, Jarrod & Mushtaq, Shahbaz & Collins, Brian & Chenu, Karine & Christopher, Jack & An-Vo, Duc-Anh, 2025. "Strategic use of index-based frost insurance to reduce financial risk and improve income stability for wheat producers in Australia," Agricultural Systems, Elsevier, vol. 226(C).
    2. Vroege, Willemijn & Dalhaus, Tobias & Finger, Robert, 2019. "Index insurances for grasslands – A review for Europe and North-America," Agricultural Systems, Elsevier, vol. 168(C), pages 101-111.
    3. Conradt, Sarah & Bokusheva, Raushan & Finger, Robert & Kussaiynov, Talgat, "undated". "Yield trend estimation in the presence of non-constant technological change and weather effects," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122541, European Association of Agricultural Economists.
    4. Zed Zulkafli & Farrah Melissa Muharam & Nurfarhana Raffar & Amirparsa Jajarmizadeh & Mukhtar Jibril Abdi & Balqis Mohamed Rehan & Khairudin Nurulhuda, 2021. "Contrasting Influences of Seasonal and Intra-Seasonal Hydroclimatic Variabilities on the Irrigated Rice Paddies of Northern Peninsular Malaysia for Weather Index Insurance Design," Sustainability, MDPI, vol. 13(9), pages 1-23, May.
    5. Kelvin Mashisia Shikuku & Ibrahim Ochenje, 2025. "Impact of index insurance on downside income risk: Evidence from northern Kenya," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 47(2), pages 863-891, May.
    6. Conradt, Sarah & Bokusheva, Raushan & Finger, Robert & Kussaiynov, Talgat, 2014. "Yield Trend Estimation in the Presence of Farm Heterogeneity and Non-linear Technological Change," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 53(2), pages 1-20, May.
    7. Morgan Bazilian & Patrick Nussbaumer & Hans-Holger Rogner & Abeeku Brew-Hammond & Vivien Foster & Shonali Pachauri & Eric Williams & Mark Howells & Philippe Niyongabo & Lawrence Musaba & Brian Ó Galla, 2011. "Energy Access Scenarios to 2030 for the Power Sector in Sub-Saharan Africa," Working Papers 2011.68, Fondazione Eni Enrico Mattei.
    8. Zarsky, Lyuba, 2010. "Climate-Resilient Industrial Development Paths: Design Principles and Alternative Models," Working Papers 179080, Tufts University, Global Development and Environment Institute.
    9. Qian, Yuan & Scherer, Laura & Tukker, Arnold & Behrens, Paul, 2020. "China's potential SO2 emissions from coal by 2050," Energy Policy, Elsevier, vol. 147(C).
    10. Conradt, Sarah & Bokusheva, Raushan & Finger, Robert & Kussaiynov, Talgat, 2012. "Improving Accuracy of Technological Trend Estimations In Farm Yield Models by Taking Weather Effects Into Account," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126662, International Association of Agricultural Economists.
    11. Emmanuel, Zachariah & Anga, Rosemary A. & Isa, Charity G., 2019. "The Determinants of Micro, Small and Medium Enterprises’ (MSMEs) Performance in Nigeria: Evidence from Business Enterprise Survey," MPRA Paper 98874, University Library of Munich, Germany.
    12. Aurélie Corne & Olga Goncalves & Nicolas Peypoch, 2020. "Evaluating the performance drivers of French ski resorts: A hierarchical approach," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(3), pages 389-405, April.
    13. Roland Clift & Sarah Sim & Henry King & Jonathan L. Chenoweth & Ian Christie & Julie Clavreul & Carina Mueller & Leo Posthuma & Anne-Marie Boulay & Rebecca Chaplin-Kramer & Julia Chatterton & Fabrice , 2017. "The Challenges of Applying Planetary Boundaries as a Basis for Strategic Decision-Making in Companies with Global Supply Chains," Sustainability, MDPI, vol. 9(2), pages 1-23, February.
    14. Audrey Laude & Christian Jonen, 2011. "Biomass and CCS: The influence of the learning effect," Working Papers halshs-00829779, HAL.
    15. O'Neill, Brian C. & Ren, Xiaolin & Jiang, Leiwen & Dalton, Michael, 2012. "The effect of urbanization on energy use in India and China in the iPETS model," Energy Economics, Elsevier, vol. 34(S3), pages 339-345.
    16. Camille Gonseth, 2013. "Impact of snow variability on the Swiss winter tourism sector: implications in an era of climate change," Climatic Change, Springer, vol. 119(2), pages 307-320, July.
    17. Eltazarov, Sarvarbek, 2023. "The potential of satellite-based data to detect weather extremes and crop yield variation for hedging agricultural weather risks in Central Asia and Mongolia: Three essays," EconStor Theses, ZBW - Leibniz Information Centre for Economics, number 286134.
    18. Shukri Ahmed & Craig McIntosh & Alexandros Sarris, 2020. "The Impact of Commercial Rainfall Index Insurance: Experimental Evidence from Ethiopia," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(4), pages 1154-1176, August.
    19. Richard G. Newell & William A. Pizer & Daniel Raimi, 2014. "Carbon Markets: Past, Present, and Future," Annual Review of Resource Economics, Annual Reviews, vol. 6(1), pages 191-215, October.
    20. Michailidou, Alexandra V. & Vlachokostas, Christos & Moussiopoulos, Νicolas, 2016. "Interactions between climate change and the tourism sector: Multiple-criteria decision analysis to assess mitigation and adaptation options in tourism areas," Tourism Management, Elsevier, vol. 55(C), pages 1-12.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:endesu:v:16:y:2014:i:2:p:393-414. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.