A Dynamic General Equilibrium Analysis of Adaptation to Climate Change in Ethiopia
This study links a multi-sectoral regionalized dynamic computable general equilibrium model of Ethiopia with a system of country-specific hydrology, crop, road and hydropower engineering models to simulate the economic impacts of climate change towards 2050. In the absence of externally funded policy-driven adaptation investments Ethiopiaâ..s GDP in the 2040s will be up to 10 percent below the counterfactual no-climate change baseline. Suitably scaled adaptation measures could restore aggregate welfare to baseline levels at a cost that is substantially lower than the welfare losses due to climate change.
|Date of creation:||2011|
|Date of revision:|
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Web page: http://www.wider.unu.edu/
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