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Abstract

This study aimed to assess the impact of climate change on rice income in four West African countries. The paper used the Ricardian approach to measure the relationship between the net income and climate variables (temperature and precipitation), soil characteristics, and socio-economic variables. Two models (with climate variables interaction and without climate variables interaction) were used under two growing environments (rain-fed and irrigated systems). We relaxed the assumption of additively separable climatic effects by including an interaction term in Ricardian equation to allow the effect of precipitation and temperature to be mutually dependent like in agronomic experiments. Data from 22,556 rice farmers across four countries were used. Results showed that if the average temperature increases by 1°C the net income of rice decreases by US$ 1,198. Results showed that irrigation can be applied as adaptation measure to climate change.

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