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How African Agriculture Can Adapt to Climate Change? - A Counterfactual Analysis from EthiopiaSalvatore Di FalcoLondon School of Economics; University of Kent Marcella VeronesiUniversity of Verona - Department of Economics; ETH Zürich - Institute vor Environmental Decisions (IED) March 23, 2012 Forthcoming in Land Economics Working Paper Series, Department of Economics, University of Verona No.14 Abstract: We analyze and compare the impact of different adaptation strategies on crop net revenues in the Nile Basin of Ethiopia. We implement a counterfactual analysis, and estimate a multinomial endogenous switching regression model of climate change adaptation and crop net revenues. We combine data from 1,000 farm households with spatial climate data at the farm household level in Ethiopia. We find that adaptation to climate change based upon a combination of strategies -opposed to strategies adopted in isolation- increases farm net revenues. In particular, the combinations of changing crops with water or soil conservation strategies deliver the highest pay off.
Number of Pages in PDF File: 45 Keywords: adaptation, climate change, endogenous switching, Ethiopia, net revenues JEL Classification: Q54, Q56 Accepted Paper SeriesDate posted: March 28, 2012 ; Last revised: June 7, 2013Suggested CitationContact Information
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