eeu sweden | Climate change

Climate Change and Total Factor Productivity in the Tanzanian Economy: A Computable General Equilibrium Analysis

The paper analyses the economic impacts of climate change-induced adjustments on the performance of the Tanzanian economy, using a country-wide CGE model. The general equilibrium framework enables comparison of the effects of climate change to the overall growth of the economy, as responsiveness to shocks is likely to depend on the macroeconomic structure of the economy.

Effect of overall climate change on agricultural productivity is projected to be relatively limited until approximately 2030 and become worse thereafter. Our simulation results indicate that, despite the projected reduction in agricultural productivity, the negative impacts can potentially be quite limited. This is because the time scales involved, and the low starting point of the economy, leave ample time for factor substitutability (i.e., replacing reduced land productivity with increased use of capital and labor) and increased overall productivity. This indicates that policies that give farmers opportunity to invest in autonomous climate adaptation, as well as policies that improve the overall performance of the economy, can be as important for reducing the impacts of climate change in the economy as direct government policies for climate adaptation. The study results can inform policymakers when choosing between direct climate -change adaptation policies or measures aimed at strengthening the fundamentals of the economy, as ways of insulating against external shocks.

EfD Authors

Keywords

Files

Centers

  • eeu sweden

Type of publication

  • EfD Discussion paper

Reference

Mintewab Bezabih, Muyeye Chambwera and Jesper Stage (2010),"Climate Change and Total Factor Productivity in the Tanzanian Economy: A Computable General Equilibrium Analysis",EfD Discussion Paper 10-14, Environment for Development Initiative and Resources for the Future, Washington DC, June 2010.

Comments

Publications

EfD Newsletter

Subscribe to our Newsletter service

Join or share



Follow EfD on Twitter
Join EfD on LinkedInJoin EfD on LinkedIn

Project info

Climate Change and Agricultural Productivity in Ethiopia: Vulnerability, Impact, Adaptation Options and Beyond

Recent scientific research has concluded that the increased atmospheric concentration of greenhouse [cont...]

See Also

Paul J. Ferraro to EfD-Central America Center at CATIE, Costa Rica

Ferraro is a Fulbright Scholar (2011-2012) and will be working at EfD-CA as guest researcher from [cont...]

The role safety nets as part of adaptation strategies to climate change in Central America

Studying collective responses to extreme climatic events is fundamental in the design of adaptation [cont...]