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

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  • Salvatore Di Falco
  • Marcella Veronesi

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 coupled with water conservation strategies or soil conservation strategies, but not when implemented in isolation.

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  • Salvatore Di Falco & Marcella Veronesi, 2013. "How Can African Agriculture Adapt to Climate Change? A Counterfactual Analysis from Ethiopia," Land Economics, University of Wisconsin Press, vol. 89(4), pages 743-766.
  • Handle: RePEc:uwp:landec:v:89:y:2013:iv:1:p:743-766
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    Cited by:

    1. Julius Manda & Cornelis Gardebroek & Makaiko G. Khonje & Arega D. Alene & Munyaradzi Mutenje & Menale Kassie, 2016. "Determinants of child nutritional status in the eastern province of Zambia: the role of improved maize varieties," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(1), pages 239-253, February.
    2. 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.
    3. Iqbal, Muhammad & Ahmad, Munir & Mustafa, Ghulam, 2015. "Impact of Farm Households’ Adaptation on Agricultural Productivity: Evidence from Different Agro-ecologies of Pakistan," MPRA Paper 72863, University Library of Munich, Germany.
    4. repec:eee:ecolec:v:138:y:2017:i:c:p:99-108 is not listed on IDEAS
    5. Salazar-Espinoza, César & Jones, Sam & Tarp, Finn, 2015. "Weather shocks and cropland decisions in rural Mozambique," Food Policy, Elsevier, vol. 53(C), pages 9-21.
    6. Salvatore Di Falco & Marcella Veronesi, 2014. "Managing Environmental Risk in Presence of Climate Change: The Role of Adaptation in the Nile Basin of Ethiopia," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 57(4), pages 553-577, April.
    7. repec:wsi:ccexxx:v:08:y:2017:i:01:n:s2010007817500014 is not listed on IDEAS
    8. Lovo, Stefania & Veronesi, Marcella, 2014. "Crop Diversification and Child Health: Empirical Evidence From Tanzania," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182735, European Association of Agricultural Economists.
    9. Waage Skjeflo, Sofie & Bruvik Westberg, Nina, 2014. "Learning the hard way? Adapting to climate risk in Tanzania," CLTS Working Papers 4/14, Norwegian University of Life Sciences, Centre for Land Tenure Studies.
    10. Varma, Poornima, 2017. "Adoption of System of Rice Intensification and its Impact on Rice Yields and Household Income: An Analysis for India," IIMA Working Papers WP2017-02-03, Indian Institute of Management Ahmedabad, Research and Publication Department.
    11. Olwande, John & Smale, Melinda, 2014. "Commercialization Effects On Household Income, Poverty, And Diversification: A Counterfactual Analysis Of Maize Farmers In Kenya," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170028, Agricultural and Applied Economics Association.
    12. Kaixing Huang, 2015. "The Economic Impacts of Global Warming on Agriculture: the Role of Adaptation," School of Economics Working Papers 2015-20, University of Adelaide, School of Economics.
    13. Huang, Kaixing & Wang, Jinxia & Huang, Jikun & Findlay, Christopher, 2018. "The potential benefits of agricultural adaptation to warming in China in the long run," Environment and Development Economics, Cambridge University Press, vol. 23(02), pages 139-160, April.
    14. Coromaldi, Manuela & Pallante, Giacomo & Savastano, Sara, 2015. "Adoption of modern varieties, farmers' welfare and crop biodiversity: Evidence from Uganda," Ecological Economics, Elsevier, vol. 119(C), pages 346-358.
    15. Zuluaga, Victor & Labarta, Ricardo & Läderach, Peter, 2015. "Climate Change Adaptation: The case of the Coffee Sector in Nicaragua," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205875, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    16. Kaixing Huang, 2016. "The Economic Impacts of Global Warming on US Agriculture: the Role of Adaptation," School of Economics Working Papers 2016-03, University of Adelaide, School of Economics.
    17. Buddhi Raj Ghimire & Koji Kotani, 2015. "A counterfactual experiment on the effectiveness of plastic ponds for smallholder farmers: A case of Nepalese vegetable farming," Working Papers SDES-2015-18, Kochi University of Technology, School of Economics and Management, revised May 2015.
    18. Vale, Petterson Molina, 2016. "The changing climate of climate change economics," Ecological Economics, Elsevier, vol. 121(C), pages 12-19.
    19. repec:eee:ecolec:v:144:y:2018:i:c:p:139-147 is not listed on IDEAS
    20. Mintewab Bezabih & Salvatore Di Falco & Alemu Mekonnen, 2014. "Is it the climate or the weather? Differential economic impacts of climatic factors in Ethiopia," GRI Working Papers 148, Grantham Research Institute on Climate Change and the Environment.
    21. Paul Watkiss, 2015. "A review of the economics of adaptation and climate-resilient development," GRI Working Papers 205, Grantham Research Institute on Climate Change and the Environment.
    22. Parvathi, Priyanka & Waibel, Hermann, 2016. "Organic Agriculture and Fair Trade: A Happy Marriage? A Case Study of Certified Smallholder Black Pepper Farmers in India," World Development, Elsevier, vol. 77(C), pages 206-220.
    23. Mintewab Bezabih & Remidius Ruhinduka & Mare Sarr, 2016. "Climate change perception and system of rice intensification (SRI) impact on dispersion and downside risk: a moment approximation approach," GRI Working Papers 256, Grantham Research Institute on Climate Change and the Environment.
    24. Michler, Jeffrey D. & Josephson, Anna L., 2017. "To Specialize or Diversify: Agricultural Diversity and Poverty Dynamics in Ethiopia," World Development, Elsevier, vol. 89(C), pages 214-226.
    25. 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.

    More about this item

    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

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