Potential impacts of climate change and adaptation in agriculture on poverty: the case of Nepal

Sudarshan Chalise and Athula Naranpanawa

Journal of the Asia Pacific Economy, 2023, vol. 28, issue 4, 1540-1559

Abstract: The main theme of this paper is to investigate the socio-economic impacts of climate change and adaptation; by comparing the losses with and without land reallocation for major staple foods as a key strategy of climate change adaptation in the farming system. In doing so, a computable general equilibrium (CGE) model for Nepal has been developed, incorporating the allocation of land for several agricultural crops, including the major staple foods, with specification of a nested set of constant elasticity of transformation (CET) functional forms. The set of land transformation elasticities facilitates switching from one crop to another; based on their agronomic characteristics and degree of climate change impacts. Using Global Trade Analysis Project (GTAP) data and Living Standard Survey (LSS) data, a social accounting matrix (SAM) for Nepal is developed and used to simulate three scenarios of climate change and land reallocation. The simulation results in the long run depict farmers as more likely to use land for crops that are comparatively less impacted by climate change, such as paddy. The results further show that land reallocation reduces the income inequality and poverty among rural and urban households by significantly controlling the income losses of marginal farmers.

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13547860.2021.1982194 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:rjapxx:v:28:y:2023:i:4:p:1540-1559

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rjap20

DOI: 10.1080/13547860.2021.1982194

Access Statistics for this article

Journal of the Asia Pacific Economy is currently edited by Leong Liew

More articles in Journal of the Asia Pacific Economy from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().