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What Does Matter the Climate Change Risk on Agriculture Adaptation: Evidence From Southern Mediterranean Country

Abderrazek BEN Maatoug (), Mohamed Bilel Triki () and Donia Aloui ()
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Abderrazek BEN Maatoug: University of Tunis
Mohamed Bilel Triki: University of Tunis
Donia Aloui: University of Tunis Carthage

Chapter Chapter 13 in Crises and Uncertainty in the Economy, 2022, pp 217-235 from Springer

Abstract: Abstract In this study, we examine how climate change may affect the incomes of farmers in a southern Mediterranean country, and we propose crop insurance as a potential means for adapting to climate change. Using cointegration in panel data for Tunisian regions, we highlight the significant likely effects of climate change on crops yields based on two scenarios from the Representative Concentration Pathways, namely RCP 4.5 and RCP 8.5. In the long term (i.e., by 2050 and 2100), we expect there will be a general increase in temperature and an overall reduction in rainfall, leading to an increase in crop losses for all regions of Tunisia under both scenarios. We therefore recommend that farmers look to insure their crop production against the risks of drought and floods, because we feel this may be an attractive device for mitigating any potential loss of income caused by such events. Indeed, crop insurance appears to present an effective means for adapting to climate change.

Keywords: Climate change; Adaptation; Crop yield losses; Cointegration in panel data; Insurance (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/978-981-19-3296-0_13

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