Impacts of considering climate variability on investment decisions in Ethiopia

Extreme interannual variability of precipitation within Ethiopia is not uncommon, inducing droughts or floods and often creating serious repercussions on agricultural and non-agricultural commodities. An agro-economic model, including mean climate variables, was developed to assess irrigation and ro...

Descripción completa

Detalles Bibliográficos
Autores principales: Block, Paul J., Strzepek, Kenneth M., Rosegrant, Mark W., Diao, Xinshen
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2006
Materias:
Acceso en línea:https://hdl.handle.net/10568/160384
_version_ 1855538913525891072
author Block, Paul J.
Strzepek, Kenneth M.
Rosegrant, Mark W.
Diao, Xinshen
author_browse Block, Paul J.
Diao, Xinshen
Rosegrant, Mark W.
Strzepek, Kenneth M.
author_facet Block, Paul J.
Strzepek, Kenneth M.
Rosegrant, Mark W.
Diao, Xinshen
author_sort Block, Paul J.
collection Repository of Agricultural Research Outputs (CGSpace)
description Extreme interannual variability of precipitation within Ethiopia is not uncommon, inducing droughts or floods and often creating serious repercussions on agricultural and non-agricultural commodities. An agro-economic model, including mean climate variables, was developed to assess irrigation and road construction investment strategies in comparison to a baseline scenario over a 12-year time horizon. The motivation for this work is to evaluate whether the inclusion of climate variability in the model has a significant effect on prospective investment strategies and the resulting country-wide economy. The mean climate model is transformed into a variable climate model by dynamically adding yearly climate-yield factors, which influence agricultural production levels and linkages to non-agricultural goods. Nine sets of variable climate data are processed by the new model to produce an ensemble of potential economic prediction indicators. Analysis of gross domestic product and poverty rate reveal a significant overestimation of the country’s future welfare by the mean climate model method, in comparison to probability density functions created from the variable climate ensemble. The ensemble is further utilized to demonstrate risk assessment capabilities. The addition of climate variability to the agro-economic model provides a framework, including realistic ranges of economic values, from which Ethiopian planners may make strategic decisions.
format Artículo preliminar
id CGSpace160384
institution CGIAR Consortium
language Inglés
publishDate 2006
publishDateRange 2006
publishDateSort 2006
publisher International Food Policy Research Institute
publisherStr International Food Policy Research Institute
record_format dspace
spelling CGSpace1603842025-11-06T07:21:37Z Impacts of considering climate variability on investment decisions in Ethiopia Block, Paul J. Strzepek, Kenneth M. Rosegrant, Mark W. Diao, Xinshen climate variability climate change water drought flooding irrigation economic aspects road construction economic situation food insecurity Extreme interannual variability of precipitation within Ethiopia is not uncommon, inducing droughts or floods and often creating serious repercussions on agricultural and non-agricultural commodities. An agro-economic model, including mean climate variables, was developed to assess irrigation and road construction investment strategies in comparison to a baseline scenario over a 12-year time horizon. The motivation for this work is to evaluate whether the inclusion of climate variability in the model has a significant effect on prospective investment strategies and the resulting country-wide economy. The mean climate model is transformed into a variable climate model by dynamically adding yearly climate-yield factors, which influence agricultural production levels and linkages to non-agricultural goods. Nine sets of variable climate data are processed by the new model to produce an ensemble of potential economic prediction indicators. Analysis of gross domestic product and poverty rate reveal a significant overestimation of the country’s future welfare by the mean climate model method, in comparison to probability density functions created from the variable climate ensemble. The ensemble is further utilized to demonstrate risk assessment capabilities. The addition of climate variability to the agro-economic model provides a framework, including realistic ranges of economic values, from which Ethiopian planners may make strategic decisions. 2006 2024-11-21T09:50:39Z 2024-11-21T09:50:39Z Working Paper https://hdl.handle.net/10568/160384 en Open Access application/pdf International Food Policy Research Institute Block, Paul J.; Strzepek, Kenneth M.; Rosegrant, Mark W.; Diao, Xinshen. Impacts of considering climate variability on investment decisions in Ethiopia. EPTD Discussion Paper 150. International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/160384
spellingShingle climate variability
climate change
water
drought
flooding
irrigation
economic aspects
road construction
economic situation
food insecurity
Block, Paul J.
Strzepek, Kenneth M.
Rosegrant, Mark W.
Diao, Xinshen
Impacts of considering climate variability on investment decisions in Ethiopia
title Impacts of considering climate variability on investment decisions in Ethiopia
title_full Impacts of considering climate variability on investment decisions in Ethiopia
title_fullStr Impacts of considering climate variability on investment decisions in Ethiopia
title_full_unstemmed Impacts of considering climate variability on investment decisions in Ethiopia
title_short Impacts of considering climate variability on investment decisions in Ethiopia
title_sort impacts of considering climate variability on investment decisions in ethiopia
topic climate variability
climate change
water
drought
flooding
irrigation
economic aspects
road construction
economic situation
food insecurity
url https://hdl.handle.net/10568/160384
work_keys_str_mv AT blockpaulj impactsofconsideringclimatevariabilityoninvestmentdecisionsinethiopia
AT strzepekkennethm impactsofconsideringclimatevariabilityoninvestmentdecisionsinethiopia
AT rosegrantmarkw impactsofconsideringclimatevariabilityoninvestmentdecisionsinethiopia
AT diaoxinshen impactsofconsideringclimatevariabilityoninvestmentdecisionsinethiopia