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Measuring the economic impact of climate change on Ethiopian agriculture : Ricardian approach

Author

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  • Deressa, Temesgen Tadesse

Abstract

This study uses the Ricardian approach to analyze the impact of climate change on Ethiopian agriculture and to describe farmer adaptations to varying environmental factors. The study analyzes data from 11 of the country's 18 agro-ecological zones, representing more than 74 percent of the country, and survey of 1,000 farmers from 50 districts. Regressing of net revenue on climate, household, and soil variables show that these variables have a significant impact on the farmers'net revenue per hectare.The study carries out a marginal impact analysis of increasing temperature and changing precipitation across the four seasons. In addition, it examines the impact of uniform climate scenarios on farmers'net revenue per hectare. Additionally, it analyzes the net revenue impact of predicted climate scenarios from three models for the years 2050 and 2100. In general, the results indicate that increasing temperature and decreasing precipitation are both damaging to Ethiopian agriculture. Although the analysis did not incorporate the carbon fertilization effect, the role of technology, or the change in prices for the future, significant information for policy-making can be extracted.

Suggested Citation

  • 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.
  • Handle: RePEc:wbk:wbrwps:4342
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    Citations

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    Cited by:

    1. Yesuf, Mahmud & di Falco, Salvatore & Deressa, Temesgen & Ringler, Claudia & Kohlin, Gunnar, 2008. "The impact of climate change and adaptation on food production in low-income countries: Evidence from the Nile Basin, Ethiopia," IFPRI discussion papers 828, International Food Policy Research Institute (IFPRI).
    2. Mulatu Debalke, Negash, 2011. "Determinants of farmers’ preference for adaptation strategies to climate change: evidence from north shoa zone of Amhara region Ethiopia," MPRA Paper 48753, University Library of Munich, Germany.
    3. Gebreegziabher, Zenebe & Mekonnen, Alemu & Deribe, Rahel & Abera, Samuel & Kassahun, Meseret Molla, 2013. "Crop-Livestock Inter-linkages and Climate Change Implications for Ethiopia’s Agriculture: A Ricardian Approach," Discussion Papers dp-13-14-efd, Resources For the Future.
    4. Cheteni, Priviledge & Mushunje, Abbyssinia & Taruvinga, Amon, 2014. "Barriers and Incentives to Potential Adoption of Biofuels Crops by Smallholder Farmers in the Eastern Cape Province, South Africa," MPRA Paper 59029, University Library of Munich, Germany.
    5. Abera Demeke & Alwin Keil & Manfred Zeller, 2011. "Using panel data to estimate the effect of rainfall shocks on smallholders food security and vulnerability in rural Ethiopia," Climatic Change, Springer, vol. 108(1), pages 185-206, September.
    6. Deressa, Temesgen T. & Hassan, Rashid M. & Ringler, Claudia, 2009. "Assessing household vulnerability to climate change: The case of farmers in the Nile Basin of Ethiopia," IFPRI discussion papers 935, International Food Policy Research Institute (IFPRI).
    7. Andrew Dillon & Jed Friedman & Pieter Serneels, 2014. "Health information, treatment, and worker productivity: Experimental evidence from malaria testing and treatment among Nigerian sugarcane cutters," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 14-05, School of Economics, University of East Anglia, Norwich, UK..
    8. Maganga, Assa & Malakini, Memory, 2015. "Agrarian Impact of Climate Change in Malawi: A Quantile Ricardian Analysis," 2015 Conference, August 9-14, 2015, Milan, Italy 212208, International Association of Agricultural Economists.
    9. Ajao, A.O. & Ogunniyi, L.T., 2011. "Farmers’ strategies for adapting to climate change in Ogbomoso agricultural zone of Oyo state," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 3(3), pages 1-11, September.
    10. 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.
    11. World Bank, 2008. "Ethiopia - A Country Study on the Economic Impacts of Climate Change," World Bank Other Operational Studies 8030, The World Bank.
    12. Bezabih, Mintewab & Chambwera, Muyeye & Stage, Jesper, 2010. "Climate Change, Total Factor Productivity, and the Tanzanian Economy: A Computable General Equilibrium Analysis," Discussion Papers dp-10-14-efd, Resources For the Future.
    13. Salvatore Di Falco & Mahmud Yesuf & Gunnar Kohlin & Claudia Ringler, 2012. "Estimating the Impact of Climate Change on Agriculture in Low-Income Countries: Household Level Evidence from the Nile Basin, Ethiopia," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 52(4), pages 457-478, August.
    14. Murendo, Conrad & Keil, Alwin & Zeller, Manfred, 2010. "Drought impacts and related risk management by smallholder farmers in developing countries: evidence from Awash River Basin, Ethiopia," Research in Development Economics and Policy (Discussion Paper Series) 114750, Universitaet Hohenheim, Department of Agricultural Economics and Social Sciences in the Tropics and Subtropics.
    15. Kelbore, Zerihun Getachew, 2012. "An Analysis of the Impacts of Climate Change on Crop Yield and Yield Variability in Ethiopia," MPRA Paper 49466, University Library of Munich, Germany.
    16. repec:gam:jsusta:v:11:y:2019:i:7:p:1921-:d:218675 is not listed on IDEAS
    17. Lazzaroni, S. & Bedi, A.S., 2014. "Weather variability and food consumption," ISS Working Papers - General Series 51272, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    18. 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.
    19. repec:eee:ecolec:v:146:y:2018:i:c:p:621-632 is not listed on IDEAS

    More about this item

    Keywords

    Environmental Economics&Policies; Climate Change; Crops&Crop Management Systems; Global Environment Facility; Common Property Resource Development;

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