How Can African Agriculture Adapt to Climate Change? - A Counterfactual Analysis from Ethiopia

Land Economics 89(4):743-766, 2013

Posted: 28 Mar 2012 Last revised: 6 Aug 2014

Salvatore Di Falco

London School of Economics; University of Kent

Marcella Veronesi

University of Verona - Department of Economics; Center for Development and Cooperation (NADEL)

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.

Keywords: adaptation, climate change, endogenous switching, Ethiopia, net revenues

JEL Classification: Q54, Q56

Suggested Citation

Di Falco, Salvatore and Veronesi, Marcella, How Can African Agriculture Adapt to Climate Change? - A Counterfactual Analysis from Ethiopia. Land Economics 89(4):743-766, 2013. Available at SSRN: https://ssrn.com/abstract=2030220 or http://dx.doi.org/10.2139/ssrn.2030220

Salvatore Di Falco

London School of Economics ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

University of Kent ( email )

Keynes College
Canterbury, Kent CT2 7NP
United Kingdom

Marcella Veronesi (Contact Author)

University of Verona - Department of Economics ( email )

Via Cantarane 24
Verona, 37129
Italy

Center for Development and Cooperation (NADEL) ( email )

Zürichbergstrasse 18
8092 Zurich, CH-1015
Switzerland

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