The Economic Impacts of Climate Change on Crop Production (A Case in Choke Mountain Watersheds of Ethiopia)
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Date
2011-05
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Addis Ababa University
Abstract
This paper explores the economic impact of climate change on crop production and the role of agricultural
technologies as an option of adaptation in the Choke Mountain watersheds of Ethiopia. In this research
Cross sectional research design was employed. Questionnaire, focus group discussion, key informant
interview and field observatioll were fhe data gathering illstruments used ill th e siudy. Both analytical and
descriptive analysis techniques such as Recardian mode!, percentage and ANOVA that were used to aualyze
the respective quautitative and qualitative data collected for the study. The descriptive statistics of this study
show that most framers ill Choke Mountain have perceived tire increased temperature Gnd the reduced
precipitation ill tll eir areas. /11 additioll, based on this choke mountaill watershed farmers have started to
take measure to minimize its effect 011 crop productioll. Thus, farmers have used agricultural technologies as
an option for climate change adaptation, though the application of dijJerelll agricultural technologies varies
in the six AEZs of the watershed. Tile paper has also identified factors that determine farmers ' decision to
use agricultural technologies such as problems related to price and supplies as well as dissemination of
agricultural techl/ologies and millimum access to credit service are some. 011 the other hand, the regression
result oj the econometrics models showed that th ere was a reduction ill net revenue pel' hectare with al/
increase ill willter precipitation. Increasing summer and spring temperature is damaging to crop production
ill choke mountaill watersheds. However, the increase spring and summer precipitation benefits choke
mountain farmers by boosting their crop net revenue per hectare. Nitosols were positively related to crop net
revel/ue per hectare. Then again, the [armers' use o[ chemical [ertilizers, improved seeds, soil conservation
and irrigation agricultural technologies have increased crop net revenue per hectare o[ choke moulltain
watershed farmers. The socia economic variables such as size of farmland, access to credit, education and
household size are positively correlated with the dependent variable net revenue. Nonetheless, gender and
age variables were negatively related crop net revenue per hectare. The estimated marginal impact of
change ill temperature and precipUatioJl indicate thaI the increase o[ will tel' temperature alld [all
temperature to a certain extent henefits fa rmers of choke moulltaill watersheds with an increase of their crop
net revenue by 2,16lbirr and 3,877.63birr respectively Whereas, its increase in spring and sum Iller
temperature reduces crop net revenue of choke mountain farmers by 7, 5l 3birr and 6,442.54 birr. The
increase of precipitation in spring, Slimmer, and fa ll seasons increases lIet revenue per hectare by 3,57 J .46,
7,105 and 2,4 11 .91 birr respectively. While increase of willter precipitation is damaging to crop productioll,
and reduces crop net revenue per hectare by 1,690. 24birr. III a lIutshell, the analysis of this paper shows the
degree of the ecollomic impact of climate change on crop farming in dijJerent AEZs of the Choke Mountain
watersheds. The finding shows that the increase in temperature and decrease of precipitation highly
determines crop agriculture in Choke mountaill watersheds. In this case, crop farming in the velY cold and
cold sub moist highlands and the warm sub moist lowlallds of the choke mountain watersheds are highly
affected by climate change. Therefore, the government of Ethiopia should have to take imperative measures
to adapt the impacts of climate change on crop productioll by designing policies that assist farmers to cope
for the changing climate. Lifting up the currelll adaptation options taken by fa rmers, particularly use of
/ertilizers, improved seeds, soil conservation and irrigatioJl practices. 11'1 line with this, capacitating/armel's
to buy agricultural technologies by themselves through the provision of credit services is important. Helping
fa n ners to raise the fertility of soil especially to those farmers in the high and lowland areas through the
supply of gypsum should also be given priority. Hence, this would buffer better climate change adaptation in
the area.
Key )Vonls: Climate Change, crop Net revenue, adaptation, agricultural technologies, choke mountain
watersheds
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Keywords
Climate Change;, crop Net revenue;, adaptation;, agricultural technologies;, choke mountain watersheds