Managing Environmental Risk in Presence of Climate Change: The Role of Adaptation in the Nile Basin of Ethiopia

Environmental and Resource Economics

Volumn 57, Issue 4, 2014, Pages 553-577

  Di Falco, Salvatore ^a,b   Veronesi, Marcella ^c,d  

^a UNIVERSITY OF GENEVA   (Switzerland)

^b LONDON SCHOOL OF ECONOMICS   (United Kingdom)

^c UNIVERSITY OF VERONA   (Italy)

^d ETH ZURICH   (Switzerland)

Author keywords

Adaptation; Climate change; Downside risk exposure; Environmental risk; Ethiopia

Indexed keywords

RISK MANAGEMENT;

ADAPTATION; ADAPTATION TO CLIMATE CHANGES; CLIMATE CHANGE ADAPTATION; DOWNSIDE RISKS; ENVIRONMENTAL RISKS; ETHIOPIA; RISK MANAGEMENT STRATEGIES; STOCHASTIC PRODUCTION;

CLIMATE CHANGE;

ADAPTATION; CLIMATE; CLIMATE CHANGE; ENVIRONMENTAL IMPACT; ENVIRONMENTAL RISK; HETEROGENEITY;

NILE BASIN;

EID: 84896545351     PISSN: 09246460     EISSN: None     Source Type: Journal    
DOI: 10.1007/s10640-013-9696-1     Document Type: Article

References (60)

1. Antle JM (1983) Testing the stochastic structure of production: a flexible moment-based approach. J Bus Econ Stat 1: 192-201.
2. Antle JM, Goodger WM (1984) Measuring stochastic technology: the case of tulare milk production. Am J Agric Econ 66: 342-350.
3. Bandiera O, Rasul I (2006) Social networks and technology adoption in northern Mozambique. Econ J 116(514): 869-902.
4. Carter DW, Milon JW (2005) Price knowledge in household demand for utility services. Land Econ 81(2): 265-283.
5. Chavas J-P (2004) Risk analysis in theory and practice. Elsevier, London.
6. Cline WR (2007) Global warming and agriculture impact estimates by country. Center for Global Development and Peter G Peterson Institute For International Economics, Washington, DC.
7. Conley T, Udry C (2010) Learning about a new technology: Pineapple in Ghana. Am Econ Rev 100(1): 35-69.
8. Daly C (2006) Guidelines for assessing the suitability of spatial climate datasets. Int J Climatol 26: 707-721.
9. Dercon S (2004) Growth and shocks: evidence from rural Ethiopia. J Dev Econ 74(2): 309-329.
10. Dercon S (2005) Risk, poverty and vulnerability in Africa. J Afr Econ 14(4): 483-488.
11. Deressa TT, Hassan RM, Ringler C, Alemu T, Yesuf M (2009) Determinants of farmers' choice of adaptation methods to climate change in the Nile Basin of Ethiopia. Glob Environ Chang 19(2): 248-255.
12. Deressa TT, Hassan RH (2009) Economic impact of climate change on crop production in Ethiopia: evidence from cross-section measures. J Afr Econ 18(4): 529-554.
13. Deressa TT, Hassan RM, Ringler C (2011) Perception of and adaptation to climate change by farmers in the Nile Basin of Ethiopia. J Agric Sci 149(1): 23-31.
14. Di Falco S, Chavas J-P (2009) On crop biodiversity, risk exposure and food security in the highlands of Ethiopia. Am J Agric Econ 91(3): 599-611.
15. Di Falco S, Veronesi M, Yesuf M (2011) Does adaptation to climate change provide food security? A micro-perspective from Ethiopia. Am J Agric Econ 93(3): 829-846.
16. Di Falco S, Veronesi M (2013) How African agriculture can adapt to climate change? A counterfactual analysis from Ethiopia. Land Econ.
17. Dinar A, Hassan R, Mendelsohn R, Benhin J et al (2008) Climate change and agriculture in Africa: impact assessment and adaptation strategies. EarthScan, London.
18. Gadisso BE (2007) Drought assessment for the Nile Basin using Meteosat second generation data with special emphasis on the upper Blue Nile Region. PhD Thesis International Institute for Geo-Information Science and Earth Observation. Eschede, The Netherlands.
19. Gbetibouo G, Hassan R (2005) Economic impact of climate change on major South African field crops: a Ricardian approach. Glob Planet Chang 47: 143-152.
20. Gbetibouo G, Hassan R, Ringler C (2010) Modelling farmers' adaptations strategies to climate change and variability: the case of the Limpopo Basin, South Africa. Agrekon, 49(2): 217-234.
21. Hagos F, Pender J, Gebreselassie N (1999) Land degradation in the highlands of Tigray and strategies for sustainable land management, 1st edn. Socio-economics and Policy Research working paper 25 ILRI, International Livestock Research Institute, Addis Ababa Ethiopia, pp 80.
22. Hartman RS (1991) A Monte Carlo analysis of alternative estimators in models involving selectivity. J Bus Econ Stat 9: 41-49.
23. Hassan R, Nhemachena C (2008) Determinants of African farmers' strategies for adaptation to climate change: multinomial choice analysis. Afr J Agric Resour Econ 2(1): 83-104.
24. Heckman JJ, Tobias JL, Vytlacil EJ (2001) Four parameters of interest in the evaluation of social programs. South Econ J 68(2): 210-233.
25. International Food Policy Research Institute (IFPRI) (2010) Ethiopia Nile Basin climate change adaptation dataset. Food and water security under global change: developing adaptive capacity with a focus on rural Africa, Washington, DC.
26. Just RE, Pope RD (1979) Production function estimation and related risk considerations. Am J Agric Econ 61: 276-284.
27. Kim K, Chavas J-P (2003) Technological change and risk management: an application to the economics of corn production. Agric Econ 29: 125-142.
28. Koundouri P, Nauges C, Tzouvelekas V (2006) Technology adoption under production uncertainty: theory and application to irrigation technology. Am J Agric Econ 88(3): 657-670.
29. Kurukulasuriya P, Mendelsohn R (2008) Crop switching as an adaptation strategy to climate change. Afr J Agric Resour Econ 2: 105-125.
30. Kurukulasuriya P, Kala N, Mendelsohn R (2011) Adaptation and climate change impacts: a structural Ricardian model of irrigation and farm income in Africa. Clim Chang Econ 2(2): 149-174.
31. Lautze S, Aklilu Y, Raven-Roberts A, Young H, Kebede G, Learning J (2003) Risk and vulnerability in Ethiopia: learning from the past, responding to the present, preparing for the future. Report for the US Agency for International Development Addis Ababa, Ethiopia.
32. Lee LF, Trost RP (1978) Estimation of some limited dependent variable models with application to housing demand. J Econ 8: 357-382.
33. Lobell DB, Burke MB, Tebaldi C, Mastrandrea MM, Falcon WP, Naylor RL (2008) Prioritizing climate change adaptation needs for food security in 2030. Science 319: 607-610.
34. Lokshin M, Sajaia Z (2004) Maximum likelihood estimation of endogenous switching regression models. Stata J 4(3): 282-289.
35. Maddala GS (1983) Limited dependent and qualitative variables in econometrics. Cambridge University Press, Cambridge, UK.
36. Maddala GS, Nelson FD (1975) Switching regression models with exogenous and endogenous switching. In: Proceeding of the American Statistical Association (Business and Economics Section), pp 423-426.
37. Maddison D (2006) The perception of and adaptation to climate change in Africa. CEEPA discussion paper no 10 Centre for Environmental Economics and Policy in Africa Pretoria. University of Pretoria, South Africa.
38. Mendelsohn R (2000) Efficient adaptation to climate change. Clim Chang 45: 583-600.
39. Mendelsohn R, Dinar A (2003) Climate, water, and agriculture. Land Econ 79: 328-341.
40. Mendelsohn R, Nordhaus W, Shaw D (1994) The impact of global warming on agriculture: a Ricardian analysis. Am Econ Rev 84(4): 753-771.
41. Menezes C, Geiss C, Tressler J (1980) Increasing downside risk. Am Econ Rev 70: 921-932.
42. MoFED (Ministry of Finance and Economic Development) (2007) Ethiopia: building on progress: a plan for accelerated and sustained development to end poverty (PASDEP). Annual Progress Report, Addis Ababa, Ethiopia.
43. Mundlak Y (1978) On the pooling of time series and cross section data. Econometrica 46(1): 69-85.
44. NMS (National Meteorological Services) (2007) Climate change national adaptation program of action (NAPA) of Ethiopia. NMS, Addis Ababa, Ethiopia.
45. Nawata K (1994) Estimation of sample selection bias models by the maximum likelihood estimator and Heckman's two-step estimator. Econ Lett 45: 33-40.
46. Nelson FD (1984) Efficiency of the two-step estimator for models with endogenous sample selection. J Econom 24: 181-196.
47. Orindi V, Ochieng A, Otiende B, Bhadwal S, Anantram K, Nair S, Kumar V, Kelkar U (2006) Mapping climate vulnerability and poverty in Africa. In: Thornton PK, Jones PG, Owiyo T, Kruska RL, Herrero M, Kristjanson P, Notenbaert A, Bekele N, Omolo A (eds) Mapping climate vulnerability and poverty in Africa. Report to the Department for International Development. International Livestock Research Institute (ILRI), Nairobi.
48. Parry M, Rosenzweig C, Livermore M (2005) Climate change, global food supply and risk of hunger. Phil Trans R Soc B 360: 2125-2138.
49. Relief Society of Tigray (REST) and NORAGRIC at the Agricultural University of Norway (1995) Farming systems, resource management and household coping strategies in Northern Ethiopia: report of a social and agro-ecological baseline study in central Tigray Aas, Norway.
50. Rosenzweig C, Parry ML (1994) Potential impact of climate change on world food supply. Nature 367: 133-138.
51. Schlenker W, Lobell DB (2010) Robust negative impacts of climate change on African agriculture. Environ Res Lett 5: 1-8.
52. Seo SN, Mendelsohn R (2008a) An analysis of crop choice: adapting to climate change in Latin American farms. Ecol Econ 67: 109-116.
53. Seo SN, Mendelsohn R (2008b) Measuring impacts and adaptations to climate change: a structural Ricardian model of African livestock management. Agric Econ 38(2): 151-165.
54. Seo N, Mendelsohn R, Dinar A, Hassan R, Kurukulasuriya P (2009) A ricardian analysis of the distribution of climate change impacts on agriculture across agro-ecological zones in Africa. Environ Resour Econ 43(3): 313-332.
55. Stige LC, Stave J, Chan K, Ciannelli L, Pattorelli N, Glantz M, Herren H, Stenseth N (2006) The effect of climate variation on agro-pastoral production in Africa. PNAS 103: 3049-3053.
56. Udry C (1996) Gender, agricultural production, and the theory of the household. J Political Econ 104(5): 1010-1046.
57. Wahba G (1990) Spline models for observational data. Society for Industrial and Applied Mathematics, Philadelphia.
58. Wooldridge JM (2002) Econometric analysis of cross section and panel data. MIT Press, Cambridge, MA.
59. World Bank (2006) Ethiopia: managing water resources to maximize sustainable growth. A World Bank Water Resources Assistance Strategy for Ethiopia. BNPP Report TF050714, Washington, DC.
60. World Bank (2010) World development report. Development and climate change. The International Bank for Reconstruction and Development/The World Bank 1818 H Street NW, Washington, DC 20433.