Examining the Economic Impacts of Climate Change on Net Crop Income in the Ethiopian Nile Basin: A Ricardian Fixed Effect Approach
Abstract
:1. Introduction
2. Literature Review
3. Materials and Methods
3.1. Model Specification: The State-of-the-Art of the Ricardian Model
3.2. The Empirical Model: Ricardian Fixed Effects Model
4. Results
4.1. Dummy Variables of the Analyis
4.2. Descriptive Analysis of for the Discrete and Continuous Socio-Economic Variables
4.3. Descriptive Analysis of the Seasonal Climate Variables
4.4. Model Regression Results
5. Discussion
6. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Variables | Attribute | Frequency | Percent |
---|---|---|---|
Gender | Male (1) | 1465 | 86% |
Female (0) | 230 | 14% | |
Literacy | Literate (1) | 612 | 36% |
Illiterate (0) | 1083 | 64% | |
Remittance | Received (1) | 198 | 12% |
Had not received (0) | 1497 | 88% | |
Crop variety | Used (1) | 526 | 31% |
Had not used (0) | 1169 | 69% | |
Irrigation | Used (1) | 76 | 4.5% |
Had not used (0) | 1619 | 95.5% |
Variables | Observations | Mean | Std.Dev | Min | Max |
---|---|---|---|---|---|
Net crop income/h | 1695 | 47,093.49 | 40,214.4 | 0.54 | 434,847.8 |
Age | 1695 | 51.84012 | 13.00435 | 20 | 99 |
hhsize | 1695 | 8 | 2.4 | 1 | 19 |
Assetvalue | 1695 | 28,456.24 | 69,791.13 | 0 | 2,059,905 |
Land in hectare | 1695 | 1.9 | 1.36 | 0 | 13 |
Average plot size | 1695 | 0.44 | 3.98 | 0.01 | 163 |
Variables | Observations | Mean | Std.Dev | Min | Max |
---|---|---|---|---|---|
Winter_T | 1695 | 18.7 | 2.5 | 13.85 | 24.7 |
Spring_T | 1695 | 20.25 | 2.36 | 16.39 | 26.38 |
Summer_T | 1695 | 18.34 | 1.85 | 14.83 | 23.29 |
Autumn_T | 1695 | 18.35 | 2.09 | 14.66 | 23.63 |
Annual_T | 1695 | 18.9 | 2.13 | 15.40 | 24.62 |
Winter_R | 1695 | 10.50 | 11.8 | 1.44 | 50.14 |
Spring_R | 1695 | 75.28 | 39.11 | 33.42 | 171.8 |
Summer_R | 1695 | 244.0 | 56.48 | 101.03 | 311.5 |
Autumn_R | 1695 | 99.00 | 46.99 | 22.68 | 179.42 |
Annual_R | 1695 | 97.00 | 32.50 | 32.96 | 150.20 |
Netcropincomec (π) | Coefficients | Netcropincomec (π) | Coefficients |
---|---|---|---|
Age | −202.05 *** | Spring_R | 3.23 |
Hhsize | 1767.52 *** | Summer_R | 313.29 *** |
Assetvalue | 0.03 ** | Autumn_R | −213.126 ** |
Land in hectare | 2705.222 *** | Yr_2 | −4281.3 ** |
Irrigation | 10,735.12 ** | Benishangul Gumuz | −36,338.36 *** |
Improved-crop-variety | 4264.8 ** | Oromia | −44,025 *** |
Spring_T | 4455 | SNNP | −22,616.7 *** |
Summer_T | 17,887.9 *** | Tigray | −22,616.7 *** |
Autumn_T | −21,688.24 *** | Constant | 32,055 |
Winter_R | 1309.7 ** | Observation = 1683 | R2 = 0.17 |
Legend: *** p < 1%,** p < 5%, * p < 10% |
Netcropincomeh (π) | Coefficients (A) | Netcropincomeh (π) | Coefficients (B) |
---|---|---|---|
Winter_T_sq | 1110.65 *** | Winter_T * Winter_R | 4.97 *** |
Spring_T_sq | −914.8 *** | Spring_T * Spring_R | −3.62 *** |
Summer_T_sq | 372.655 *** | Summer_T * Summer_R | 3.93 *** |
Autumn_T_sq | −478.6 ** | Autumn_T * Autumn_R | −0.61 |
Winter_R_sq | 22.12 ** | Annual_T | −1.59 |
Spring_R_sq | −3.6 *** | Annual_R | 6.28 *** |
Summer_R_sq | 0.7 *** | _constant | 30,497 *** |
Autumn_R_sq | −1.42 *** | ||
Yr_1 | 4285.8 ** | ||
_constant | 59,384.5 *** | R2: within = 0.0256 | |
R2 between = 0.55 | n = 1695 | n = 1695 | |
Legend | *** p < 1%, ** p < 5% |
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Baylie, M.M.; Fogarassy, C. Examining the Economic Impacts of Climate Change on Net Crop Income in the Ethiopian Nile Basin: A Ricardian Fixed Effect Approach. Sustainability 2021, 13, 7243. https://doi.org/10.3390/su13137243
Baylie MM, Fogarassy C. Examining the Economic Impacts of Climate Change on Net Crop Income in the Ethiopian Nile Basin: A Ricardian Fixed Effect Approach. Sustainability. 2021; 13(13):7243. https://doi.org/10.3390/su13137243
Chicago/Turabian StyleBaylie, Melese Mulu, and Csaba Fogarassy. 2021. "Examining the Economic Impacts of Climate Change on Net Crop Income in the Ethiopian Nile Basin: A Ricardian Fixed Effect Approach" Sustainability 13, no. 13: 7243. https://doi.org/10.3390/su13137243