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Climate change and total factor productivity in the Tanzanian economy

Author

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  • Mintewab Bezabih
  • Muyeye Chambwera
  • Jesper Stage

Abstract

The economic impacts of climate-change-induced adjustments on the performance of the Tanzanian economy are analysed, using a countrywide computable general equilibrium (CGE) model. The effect of overall climate change on agricultural productivity (modelled as reduced land productivity) is projected to be relatively limited until about 2030, thereafter becoming worse. The simulation results indicate that despite the projected reduction in agricultural productivity, the negative impacts can potentially be quite limited. This is because the timescales involved, as well as the low starting point of the economy, leave ample room for factor substitutability and increased overall productivity. This indicates that policies that give farmers the opportunity to invest in autonomous climate adaptation, as well as those that improve the overall performance of the economy, can be as important in reducing the impacts of climate change in the economy as direct government policies for adaptation.

Suggested Citation

  • Mintewab Bezabih & Muyeye Chambwera & Jesper Stage, 2011. "Climate change and total factor productivity in the Tanzanian economy," Climate Policy, Taylor & Francis Journals, vol. 11(6), pages 1289-1302, November.
  • Handle: RePEc:taf:tcpoxx:v:11:y:2011:i:6:p:1289-1302
    DOI: 10.1080/14693062.2011.579300
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    File URL: http://hdl.handle.net/10.1080/14693062.2011.579300
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    References listed on IDEAS

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    1. World Bank, 2008. "Ethiopia - A Country Study on the Economic Impacts of Climate Change," World Bank Other Operational Studies 8030, The World Bank.
    2. Thurlow, James & Wobst, Peter, 2003. "Poverty-focused social accounting matrices for Tanzania," TMD discussion papers 112, International Food Policy Research Institute (IFPRI).
    3. Deressa, Temesgen Tadesse, 2007. "Measuring the economic impact of climate change on Ethiopian agriculture : Ricardian approach," Policy Research Working Paper Series 4342, The World Bank.
    4. Ahmed , Syud Amer & Diffenbaugh, Noah S. & Hertel , Thomas W. & Lobell, David B. & Ramankutty, Navin & Rios, Ana R. & Rowhani, Pedram, 2009. "Climate volatility and poverty vulnerability in Tanzania," Policy Research Working Paper Series 5117, The World Bank.
    5. Volker Treichel, 2005. "Tanzania’s Growth Process and Success in Reducing Poverty," IMF Working Papers 05/35, International Monetary Fund.
    6. William R. Cline, 2007. "Global Warming and Agriculture: Impact Estimates by Country," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4037, September.
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    Cited by:

    1. Gebreegziabher, Zenebe & Stage, Jesper & Mekonnen, Alemu & Alemu, Atlaw, 2016. "Climate change and the Ethiopian economy: a CGE analysis," Environment and Development Economics, Cambridge University Press, vol. 21(2), pages 205-225, April.
    2. Gebreegziabher, Zenebe & Stage, Jesper & Mekonnen, Alemu & Alemu, Atlaw, 2011. "Climate Change and the Ethiopian Economy: A Computable General Equilibrium Analysis," Discussion Papers dp-11-09-efd, Resources For the Future.
    3. Montaud, Jean-Marc & Pecastaing, Nicolas & Tankari, Mahamadou, 2017. "Potential socio-economic implications of future climate change and variability for Nigerien agriculture: A countrywide dynamic CGE-Microsimulation analysis," Economic Modelling, Elsevier, vol. 63(C), pages 128-142.
    4. Olabisi, Michael & Tschirley, David L. & Nyange, David & Awokuse, Titus, 2018. "Energy Demand Substitution from Biomass to Imported Kerosene: Evidence from Tanzania," Feed the Future Innovation Lab for Food Security Policy Research Papers 279913, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
    5. Jean-Marc MONTAUD, 2019. "Agricultural Drought Impacts on Crops Sector and Adaptation Options in Mali: a Macroeconomic Computable General Equilibrium Analysis," Working Papers 2018-2019_5, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Feb 2019.
    6. repec:eee:enepol:v:130:y:2019:i:c:p:243-252 is not listed on IDEAS
    7. Jean-Marc Montaud, 2019. "Agricultural Drought Impacts on Crops Sector and Adaptation Options in Mali: a Macroeconomic Computable General Equilibrium Analysis," Working Papers hal-02141050, HAL.

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