How African Agriculture Can Adapt to Climate Change? - A Counterfactual Analysis from Ethiopia
Salvatore Di Falco
London School of Economics; University of Kent
University of Verona - Department of Economics; ETH Zürich - Institute vor Environmental Decisions (IED)
November 2, 2012
Land Economics 89(4):743-766, 2013
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.
Keywords: adaptation, climate change, endogenous switching, Ethiopia, net revenues
JEL Classification: Q54, Q56Accepted Paper Series
Date posted: March 28, 2012 ; Last revised: November 3, 2013
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