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Climate change and economic growth in sub-Saharan Africa: an empirical analysis of aggregate- and sector-level growth

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  • Desalegn Dawit Chamma

    (Economics Department, Addis Ababa University College of Business and Economics
    Jönköping University, Jönköping International Business School)

Abstract

This paper utilizes a panel dataset encompassing 43 sub-Saharan African countries spanning from 1970 to 2019 to investigate the impact of climate change on both aggregate- and sector-specific economic growth. Via fixed effects and seemingly unrelated regression models, I show that climate change, characterized by rising temperatures and diminishing precipitation, exerts a detrimental influence on both aggregate and sectoral growth, albeit with varying degrees of severity. Such diverse effects emanate from the significant impacts of climate change on the agricultural sector, resulting in discernible alterations in output. Conversely, the industry, manufacturing, and service sectors demonstrate comparatively minor susceptibility to climate-induced change. Furthermore, the analysis highlights that the sub-Saharan African countries most vulnerable to climate change experience the greatest economic repercussions, and the most sensitive countries suffer the most.

Suggested Citation

  • Desalegn Dawit Chamma, 2025. "Climate change and economic growth in sub-Saharan Africa: an empirical analysis of aggregate- and sector-level growth," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 27(3), pages 813-845, December.
    • Handle: RePEc:spr:jsecdv:v:27:y:2025:i:3:d:10.1007_s40847-024-00377-x
    DOI: 10.1007/s40847-024-00377-x
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    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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