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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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    Cited by:

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    2. Loudi Njoya & Ibrahim Ngouhouo & Simplice A. Asongu & Friedrich Schneider, 2022. "The role of economic prosperity on informality in Africa: evidence of corruption thresholds from PSTR," Working Papers of the African Governance and Development Institute. 22/012, African Governance and Development Institute..
    3. Jean-Marc Montaud, 2019. "Agricultural Drought Impacts on Crops Sector and Adaptation Options in Mali: a Macroeconomic Computable General Equilibrium Analysis," Working papers of CATT hal-02141050, HAL.
    4. Gebreegziabher, Zenebe & Stage, Jesper & Mekonnen, Alemu & Alemu, Atlaw, 2011. "Climate Change and the Ethiopian Economy: A Computable General Equilibrium Analysis," RFF Working Paper Series dp-11-09-efd, Resources for the Future.
    5. Olabisi, Michael & Tschirley, David L. & Nyange, David & Awokuse, Titus, 2019. "Energy demand substitution from biomass to imported kerosene: Evidence from Tanzania," Energy Policy, Elsevier, vol. 130(C), pages 243-252.
    6. 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.
    7. 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.
    8. 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.
    9. Escalante, Luis Enrique & Maisonnave, Helene, 2022. "Impacts of climate disasters on women and food security in Bolivia," Economic Modelling, Elsevier, vol. 116(C).
    10. Femi E. Hounnou & Houinsou Dedehouanou & Afio Zannou & Johanes Agbahey & Gauthier Biaou, 2019. "Economy-Wide Effects of Climate Change in Benin: An Applied General Equilibrium Analysis," Sustainability, MDPI, vol. 11(23), pages 1-15, November.
    11. Sarr, Mare & Bezabih Ayele, Mintewab & Kimani, Mumbi E. & Ruhinduka, Remidius, 2021. "Who benefits from climate-friendly agriculture? The marginal returns to a rainfed system of rice intensification in Tanzania," World Development, Elsevier, vol. 138(C).
    12. Getnet, Mezegebu & Hengsdijk, Huib & van Ittersum, Martin, 2014. "Disentangling the impacts of climate change, land use change and irrigation on the Central Rift Valley water system of Ethiopia," Agricultural Water Management, Elsevier, vol. 137(C), pages 104-115.
    13. 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.
    14. Bannor, Frank & Dikgang, Johane & Gelo, Dambala, 2021. "Is climate variability subversive for agricultural total factor productivity growth? Long-run evidence from sub-Saharan Africa," MPRA Paper 107590, University Library of Munich, Germany.
    15. Sudarshan Chalise & Dr Athula Naranpanawa, 2016. "Climate change adaptation in agriculture: A general equilibrium analysis of land re-allocation in Nepal," EcoMod2016 9272, EcoMod.

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