Economic Development under Climate Change: Economy-Wide and Regional Analysis for Ethiopia

✍ Scribed by Amsalu Woldie Yalew

• Publisher: Springer VS
• Year: 2020
• Tongue: English
• Leaves: 140
• Category: Library

✦ Synopsis

Amsalu Woldie Yalew attempts to address the direct and indirect economic effects of climate change, adaptation costs, and adaptation finance in developing countries with emphasis to Ethiopia using a static computable general equilibrium (CGE) model coupled with a regional module. The results show that the economy-wide effects of climate change are profound. Planned public adaptation that aims to fully neutralize climate change-induced agricultural productivity shocks may help to avert the aggregate effects but with residual effects. The results also indicate that structural change underpins climate-resilient development as it contributes to dampen the adverse consequences of climate change on aggregate GDP and households’ welfare.

✦ Table of Contents

Acknowledgments
Table of Contents
List of Figures
List of Tables
Acronyms
1 Introduction
2 Theoretical and Conceptual Background
2.1 Introduction
2.2 Climate and climate change
2.3 Climate change, agriculture, and development
2.4 Climate change, public policy, and development
2.5 Computable general equilibrium models
3 Overview of the Ethiopian Economy
3.1 Introduction
3.2 Geography
3.3 Population and labor force
3.4 Rural-urban divide
3.5 Administrative regions of Ethiopia
3.6 Macro-economy
3.7 Public finance
3.8 Prospects of the economy
4 Methodological Framework
4.1 Introduction
4.2 CGE model choice
4.3 Description of the CGE model
4.3.1 Production
4.3.2 Commodities
4.3.3 Households
4.3.4 Enterprises
4.3.5 Government
4.3.6 Rest of the world
4.3.7 Saving-Investment
4.4 The CGE model database
4.4.1 Activity (A) accounts
4.4.2 Factor (F) accounts
4.4.3 Commodity (C) accounts: Supply
4.4.4 Commodity (C) accounts: Demand
4.4.5 Commodity (C) accounts: International trade
4.4.6 Government (GOV) account
4.4.7 Tax (TAX) accounts
4.4.8 Households (H) account
4.4.9 External sector (ROW) account
4.4.10 Saving-Investment (S-I) account
4.5 The CGE model calibration
4.6 CGE simulations and economy-wide analysis
4.7 Regional projections and analysis
5 Impacts of Climate Change
5.1 Introduction43F
5.2 Climate change, agriculture, and migration
5.3 Climate change and Ethiopia
5.4 Materials and methods
5.4.1 Climate change effects on crop productivity
5.4.2 Climate change effects on livestock productivity
5.4.3 Climate change effects on agricultural labor migration
5.4.4 Modeling into the CGE model
5.5 Economy-wide results and analysis
5.5.1 Macro-economy
5.5.2 Sectoral output
5.5.3 Factor markets
5.5.4 Households’ welfare
5.6 Regional projections and analysis
5.7 Conclusions
6 Costs of Planned Adaptation
6.1 Introduction
6.2 Planned public adaptation to climate change
6.3 Adaptation to climate change in Ethiopia
6.4 Materials and methods
6.4.1 Adaptation measures
6.4.2 Direct benefits of adaptation
6.4.3 Composite adaptation measure
6.4.4 Direct cost of adaptation
6.4.5 Modeling into the CGE model
6.5 Economy-wide results and analysis
6.5.1 Macro-economy
6.5.2 Sectoral output
6.5.3 Factor markets
6.5.4 Households’ welfare
6.6 Regional projections and analysis
6.7 Conclusions
7 Public Finance for Adaptation
7.1 Introduction
7.2 Adaptation finance in developing countries
7.3 Adaptation finance in Ethiopia
7.4 Materials and methods
7.4.1 Adaptation finance schemes
7.4.2 Modeling into the CGE model
7.5 Economy-wide results and analysis
7.5.1 Macro-economy
7.5.2 Sectoral output
7.5.3 Factor markets
7.5.4 Households’ welfare
7.6 Regional projections and analysis
7.7 Conclusions
8 Climate-Resilient Development
8.1 Introduction
8.2 Structural change and climate change
8.3 Structural change in Ethiopia
8.4 Materials and methods
8.4.1 Changes in labor skill
8.4.2 Changes in total labor supply
8.4.3 Changes in transaction costs
8.4.4 Modeling into the CGE model
8.5 Economy-wide results and analysis
8.6 Regional projections and analysis
8.7 Conclusions
9 Conclusions and policy implications
Bibliography
Appendix
Materials and Methods
Sensitivity analysis