Droughts and floods in Malawi: Assessing the economywide effects

Malawi suffers frequent droughts and floods. In an economy that is heavily dependent on the agricultural sector, it is crucial to understand the implications of these extreme climate events. Not only are rural livelihoods affected due to the severe impacts on the agricultural sector, but nonfarm and...

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Main Authors: Pauw, Karl, Thurlow, James, van Seventer, Dirk
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 2010
Subjects:
Online Access:https://hdl.handle.net/10568/154292
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author Pauw, Karl
Thurlow, James
van Seventer, Dirk
author_browse Pauw, Karl
Thurlow, James
van Seventer, Dirk
author_facet Pauw, Karl
Thurlow, James
van Seventer, Dirk
author_sort Pauw, Karl
collection Repository of Agricultural Research Outputs (CGSpace)
description Malawi suffers frequent droughts and floods. In an economy that is heavily dependent on the agricultural sector, it is crucial to understand the implications of these extreme climate events. Not only are rural livelihoods affected due to the severe impacts on the agricultural sector, but nonfarm and urban households are also vulnerable given the strong production and price linkages between agriculture and the rest of the economy. This study uses a general equilibrium model to estimate the economywide impacts of drought- and flood-related crop production losses. Climate simulations are based on production loss estimates from stochastic drought and flood models. Model results show that the economic losses due to extreme climate events are significant: Malawi loses 1.7 percent of its gross domestic product on average every year due to the combined effects of droughts and floods. This is equivalent to almost US$22 million in 2005 prices. Given their crop choices, it is smaller-scale farmers and those in the flood-prone southern regions of the country who are worst affected. However, urban and nonfarm households are not spared. Food shortages lead to sharp price increases that reduce urban households' disposable incomes. This study makes an important contribution by estimating the economywide impacts of extreme climate events. However, this is only the first step toward designing appropriate agricultural and development strategies that explicitly account for climate uncertainty.
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spelling CGSpace1542922025-11-06T07:22:54Z Droughts and floods in Malawi: Assessing the economywide effects Pauw, Karl Thurlow, James van Seventer, Dirk drought flooding computable general equilibrium models poverty agricultural sector livelihoods households gross national product Malawi suffers frequent droughts and floods. In an economy that is heavily dependent on the agricultural sector, it is crucial to understand the implications of these extreme climate events. Not only are rural livelihoods affected due to the severe impacts on the agricultural sector, but nonfarm and urban households are also vulnerable given the strong production and price linkages between agriculture and the rest of the economy. This study uses a general equilibrium model to estimate the economywide impacts of drought- and flood-related crop production losses. Climate simulations are based on production loss estimates from stochastic drought and flood models. Model results show that the economic losses due to extreme climate events are significant: Malawi loses 1.7 percent of its gross domestic product on average every year due to the combined effects of droughts and floods. This is equivalent to almost US$22 million in 2005 prices. Given their crop choices, it is smaller-scale farmers and those in the flood-prone southern regions of the country who are worst affected. However, urban and nonfarm households are not spared. Food shortages lead to sharp price increases that reduce urban households' disposable incomes. This study makes an important contribution by estimating the economywide impacts of extreme climate events. However, this is only the first step toward designing appropriate agricultural and development strategies that explicitly account for climate uncertainty. 2010 2024-10-01T14:00:40Z 2024-10-01T14:00:40Z Working Paper https://hdl.handle.net/10568/154292 en Open Access application/pdf International Food Policy Research Institute Pauw, Karl; Thurlow, James; van Seventer, Dirk. 2010. Droughts and floods in Malawi: Assessing the economywide effects. IFPRI Discussion Paper 962. https://hdl.handle.net/10568/154292
spellingShingle drought
flooding
computable general equilibrium models
poverty
agricultural sector
livelihoods
households
gross national product
Pauw, Karl
Thurlow, James
van Seventer, Dirk
Droughts and floods in Malawi: Assessing the economywide effects
title Droughts and floods in Malawi: Assessing the economywide effects
title_full Droughts and floods in Malawi: Assessing the economywide effects
title_fullStr Droughts and floods in Malawi: Assessing the economywide effects
title_full_unstemmed Droughts and floods in Malawi: Assessing the economywide effects
title_short Droughts and floods in Malawi: Assessing the economywide effects
title_sort droughts and floods in malawi assessing the economywide effects
topic drought
flooding
computable general equilibrium models
poverty
agricultural sector
livelihoods
households
gross national product
url https://hdl.handle.net/10568/154292
work_keys_str_mv AT pauwkarl droughtsandfloodsinmalawiassessingtheeconomywideeffects
AT thurlowjames droughtsandfloodsinmalawiassessingtheeconomywideeffects
AT vanseventerdirk droughtsandfloodsinmalawiassessingtheeconomywideeffects