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Power Ahead: Meeting Ethiopiaâ..s Energy Needs under a Changing Climate

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  • Block, Paul

Abstract

Ethiopia is powering ahead with an ambitious energy development strategy, highly reliant on abundant hydropower potential. A changing climate, including uncertain water supply, however, may pose a salient challenge to meeting expected targets. Bridging the modeling gaps between climate, energy, and economics, and effectively transforming climate changes into economic measures, is an emerging inter-disciplinary field as nations attempt to position themselves for an uncertain future. Such a framework is adopted here to assess energy production and adaptation costs for four climate change scenarios over 2010â..49. Scenarios that favor a drying trend country-wide may lead to losses of 130â..200 terawatt hours over the 40-year period, translating to adaptation costs of US$2â..4 billion, compared to a no climate change scenario. Even given these potential losses, energy development utilizing hydropower appears economically reasonable from this deterministic, sector-independent evaluation. This development is desperately needed, independent of future climate change trends, with the hope of appreciably reducing vulnerability to variability.

Suggested Citation

  • Block, Paul, 2011. "Power Ahead: Meeting Ethiopiaâ..s Energy Needs under a Changing Climate," WIDER Working Paper Series 090, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp2011-90
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    File URL: http://www.wider.unu.edu/sites/default/files/wp2011-090.pdf
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    References listed on IDEAS

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    1. Bartle, Alison, 2002. "Hydropower potential and development activities," Energy Policy, Elsevier, vol. 30(14), pages 1231-1239, November.
    2. Sherman Robinson & Dirk Willenbockel & Kenneth Strzepek, 2012. "A Dynamic General Equilibrium Analysis of Adaptation to Climate Change in Ethiopia," Review of Development Economics, Wiley Blackwell, vol. 16(3), pages 489-502, August.
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    Keywords

    Ethiopia; energy development; hydropower; climate change; economics;

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