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Climate change and economic growth in a rain-fed economy: how much does rainfall variability cost Ethiopia?


<p>Climate change may impact economic growth through rainfall variability. This paper, using a simple growth model, demonstrates that the adverse impact of rainfall variability on economic growth depends on the rate of ex- pansion of the amplitude of rainfall variability and frequency of occurrence of extreme events. A co-integration analysis using time series data from Ethiopia shows both inter-annual and within-annual rainfall variations have negative efect on growth. Simulation results on the forgone growth due to rainfall variability for the last five decades implied that mitigation and adap- tation strategies towards climate change that reduce the impact of rainfall variability would put Ethiopia on a higher trajectory of growth.</p>

Corporate Author: 
Ethiopian Economic Association/Ethiopian Economic Policy Research Institute (EEA/EEPRI)
Ethiopian Economic Association/Ethiopian Economic Policy Research Institute (EEA/EEPRI)
Primary Descriptors: 

<p>Sustainable development;</p>

Secondary Descriptor: 

<p>Climatic changes - Economic aspects</p>

Geographic Descriptors: 
Cataloge Date: 
Broad Subject heading: 
Economic development
Call Number: 
WPN 3/2012
Serial Key Title: 
EEA/EEPRI working paper
Publication catagory: 
Content type: 
Publication date: 
2013-02-02 00:00:00
Forum or Discussion date: 
2013-03-02 00:00:00
Place of publication: 
Addis Ababa, Ethiopia
Type of material: