Environmental Valuation & Cost-Benefit News
Measuring The Economic Impact of Climate Change on Ethiopian Agriculture: A Ricardian Approach
10/22/07
10:21:38 am, by damageva 
, 219 words, 360 views 
Categories: Climate Change GHG Carbon CO2, Africa, Economic Development, Agriculture, Forestry and Food, Research Institute NGO NonProfit, Costs and Benefits
Measuring The Economic Impact of Climate Change on Ethiopian Agriculture: A Ricardian Approach
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.
by Temesgen Tadesse Deressa; 2 Ethiopian Development Research Institute (EDRI), e-mail: ttderessa@yahoo.com.
The World Bank www.worldbank.org
Development Research Group, Sustainable Rural and Urban Development Team
Policy Research Working Paper WPS 4342; September, 2007
http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2007/09/04/000158349_20070904101248/Rendered/PDF/wps4342.pdf
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