The Economic Impact of Climate Change on Plantation Agriculture in Nigeria: Implication for Enhanced Productivity

William M. Fonta, Bossa Aymar Y., Sylla Mouhamadou B., Urama Nathaniel E. and Edame Greg E.

Working Papers from African Economic Research Consortium

Abstract: This study used the Ricardian analytical framework to examine the relative importance of climate normals (average long-term temperature and precipitation) in explaining net revenue per hectare (NRh) for cocoa farms in Nigeria under supplementary irrigated and rainfed conditions. A farm-household survey involving 280 cocoa farmers across seven cocoa-producing states in Nigeria was carried out. Net revenue per cocoa hectare was regressed on climate, household socioeconomic characteristics and other control variables. The results indicate high sensitivity of NRh to climate normals in Nigeria, depending on whether cocoa farms are supplementary irrigated or not. On the average, annual increases in temperature and decreasing precipitations are associated with NRh losses for rainfed farms, whereas it increases for irrigated cocoa farms. Projections of future climate change impacts using different climate scenarios (i.e., 6 CORDEX Regional Climate Models [RCMs] Ensemble between 2036-2065 and 2071-2100, and a 2.50 C increase in temperature only, a 5% decrease in rainfall only, and a uniform 2.50 C increase in temperature and a 5% reduction in precipitation from 2050-2100), suggest a wide range of outcomes on NRh for both rainfed and supplementary irrigated cocoa farms. Specifically, the various climate scenarios predict a fall in NRh for rainfed farms, compared to net gains for irrigated cocoa farms. This clearly shows irrigation as an important adaptation strategy by farmers in Nigeria to reduce the harmful effects of climate change.

Date: 2017-11-30
Note: African Economic Research Consortium
References: Add references at CitEc
Citations:

Downloads: (external link)
https://publication.aercafricalibrary.org/handle/123456789/1177 (application/pdf)

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:aer:wpaper:8636c4b1-c4c8-4d51-86d4-5e42309a1f59

Access Statistics for this paper

More papers in Working Papers from African Economic Research Consortium Contact information at EDIRC.
Bibliographic data for series maintained by Daniel Njiru ().