IDEAS home Printed from https://ideas.repec.org/a/ags/ijfaec/266475.html
   My bibliography  Save this article

Long Run Determinants Of Cereal Production In Ethiopia: Does Co2 Emission Matter?

Author

Listed:
  • Wassie, Solomon Bizuayehu

Abstract

The study employed vector error correction model to examine the long run relationship between climate change and cereal production using time series data (1962-2014) in Ethiopia. The cointegrating equation shows that the parameters included in the model are jointly significant at 1% significant level. The study revealed that a 10% percent increase in CO2 emission would have 2.75 % cereal production loss in the country. However, land and fertilizer were found to have positive and significant long-term impact on cereal production in the country. The forecasted cereal production - using contingent equation – shows that cereal production is expected to grow annually by 2.8%, on average, for the next 10 years. As a concluding remark, efforts towards reducing CO2 should be strengthened to further enhance the cereal production growth in the country. Moreover, providing fertilizer for the farmers with a reasonable price on due time is decisive to benefit from intensive agriculture.

Suggested Citation

  • Wassie, Solomon Bizuayehu, 2017. "Long Run Determinants Of Cereal Production In Ethiopia: Does Co2 Emission Matter?," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 5(2), April.
    • Handle: RePEc:ags:ijfaec:266475
    DOI: 10.22004/ag.econ.266475
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/266475/files/LONG%20RUN%20DETERMINANTS%20OF%20CEREAL%20PRODUCTION%20IN%20ETHIOPIA%20DOES%20CO2%20EMISSION%20MATTER.pdf
    Download Restriction: no
    File URL: https://ageconsearch.umn.edu/record/266475/files/LONG%20RUN%20DETERMINANTS%20OF%20CEREAL%20PRODUCTION%20IN%20ETHIOPIA%20DOES%20CO2%20EMISSION%20MATTER.pdf?subformat=pdfa
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.266475?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ibrahim Worku, 2011. "Road Sector Development and Economic Growth in Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 19(2), November.
    2. Samuel asuamah Yeboah & Lawrence Amponsah & Glory Kofi Hoggar, 2015. "Climate Change and Agriculture: Modeling the Impact of Carbon Dioxide Emission on Cereal Yield in Ghana," Agriculture and Food Sciences Research, Asian Online Journal Publishing Group, vol. 2(2), pages 32-38.
    3. Pervez Zamurrad Janjua & Ghulam Samad & Nazakat Ullah Khan, 2010. "Impact of Climate Change on Wheat Production: A Case Study of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 49(4), pages 799-822.
    4. Gonzalo, Jesus, 1994. "Five alternative methods of estimating long-run equilibrium relationships," Journal of Econometrics, Elsevier, vol. 60(1-2), pages 203-233.
    5. Ibrahim Worku, 2011. "Road Sector Development and Economic Growth in Ethiopia," Working Papers 004, Policy Studies Institute.
    6. Harry M. Kaiser & Susan J. Riha & Daniel S. Wilks & David G. Rossiter & Radha Sampath, 1993. "A Farm-Level Analysis of Economic and Agronomic Impacts of Gradual Climate Warming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(2), pages 387-398.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Birouke Tefera & Frehiwot Worku & Zewdu Ayalew, 2012. "Implications of Oil Price Shocks and Subsidizing Oil Prices to the Ethiopian Economy: A CGE Analysis," Working Papers 008, Policy Studies Institute.
    2. Shakeel Ahmad & Muhammad Tariq & Touseef Hussain & Qasir Abbas & Hamidullah Elham & Iqbal Haider & Xiangmei Li, 2020. "Does Chinese FDI, Climate Change, and CO 2 Emissions Stimulate Agricultural Productivity? An Empirical Evidence from Pakistan," Sustainability, MDPI, vol. 12(18), pages 1-20, September.
    3. Elena Perra, & Sanfilippo, Marco & Sundaram, Asha, 2022. "Roads, Competition, and the Informal Sector," Department of Economics and Statistics Cognetti de Martiis. Working Papers 202221, University of Turin.
    4. Muhammad Nouman Shafiq & Seemab Gillani & Shaiza Shafiq, 2021. "Climate Change and Agricultural Production in Pakistan," iRASD Journal of Energy and Environment, International Research Association for Sustainable Development (iRASD), vol. 2(2), pages 47-54, December.
    5. Jonathan Demenge & Rossella Alba & Katharina Welle & Kebede Manjur & Alemu Addisu & Lyla Mehta & Kifle Woldearegay, 2015. "Multifunctional Roads," Journal of Infrastructure Development, India Development Foundation, vol. 7(2), pages 165-180, December.
    6. Barnaba Trinca, 2022. "Disuguaglianza E Microfinanza Ai Tempi Del Covid," Working Papers - Economics wp2022_01.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    7. Law, Siong Hook & Tan, Hui & baharumshah, ahmad, 1999. "Financial Liberalization in ASEAN and the Fisher Hypothesis," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 33, pages 65-86.
    8. Levent, Korap, 2007. "Modeling purchasing power parity using co-integration: evidence from Turkey," MPRA Paper 19584, University Library of Munich, Germany.
    9. Francesca Iorio & Stefano Fachin, 2014. "Savings and investments in the OECD: a panel cointegration study with a new bootstrap test," Empirical Economics, Springer, vol. 46(4), pages 1271-1300, June.
    10. Abbas Alavirad & Sanhita Athawale, 2005. "The impact of the budget deficit on inflation in the Islamic Republic of Iran," OPEC Energy Review, Organization of the Petroleum Exporting Countries, vol. 29(1), pages 37-49, March.
    11. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2014. "What Do We Learn from the Weather? The New Climate-Economy Literature," Journal of Economic Literature, American Economic Association, vol. 52(3), pages 740-798, September.
    12. Tang, Chor Foon & Tan, Eu Chye, 2015. "Does tourism effectively stimulate Malaysia's economic growth?," Tourism Management, Elsevier, vol. 46(C), pages 158-163.
    13. Michael S. Haigh & David A. Bessler, 2004. "Causality and Price Discovery: An Application of Directed Acyclic Graphs," The Journal of Business, University of Chicago Press, vol. 77(4), pages 1099-1121, October.
    14. Keblowski, Piotr & Welfe, Aleksander, 2010. "Estimation of the equilibrium exchange rate: The CHEER approach," Journal of International Money and Finance, Elsevier, vol. 29(7), pages 1385-1397, November.
    15. Morley, Bruce, 2006. "Causality between economic growth and immigration: An ARDL bounds testing approach," Economics Letters, Elsevier, vol. 90(1), pages 72-76, January.
    16. Bernardina Algieri, 2014. "A roller coaster ride: an empirical investigation of the main drivers of the international wheat price," Agricultural Economics, International Association of Agricultural Economists, vol. 45(4), pages 459-475, July.
    17. Jyh-lin, Wu & Fountas, Stilianos & Show-lin, Chen, 1996. "Testing for the sustainability of the current account deficit in two industrial countries," Economics Letters, Elsevier, vol. 52(2), pages 193-198, August.
    18. Chow, Sheung Chi & Vieito, João Paulo & Wong, Wing Keung, 2019. "Do both demand-following and supply-leading theories hold true in developing countries?," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 513(C), pages 536-554.
    19. Levent KORAP, 2008. "Exchange Rate Determination Of Tl/Us$:A Co-Integration Approach," Istanbul University Econometrics and Statistics e-Journal, Department of Econometrics, Faculty of Economics, Istanbul University, vol. 7(1), pages 24-50, May.
    20. Enid Katungi & Endeshaw Habte & Paul Aseete & Jean Claude Rubyogo, 2024. "Does Adopting the Bean Technology Bundle Enhance Food Security and Resilience for Smallholder Farmers in Ethiopia?," Sustainability, MDPI, vol. 16(24), pages 1-30, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ijfaec:266475. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iiaaktr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.