Economic Development under Climate Change Economy-Wide and Regional Analysis for Ethiopia

Amsalu Woldie Yalew attempts to address the direct and indirect economic effects of climate change, adaptation costs, and adaptation finance in developing countries with emphasis to Ethiopia using a static computable general equilibrium (CGE) model coupled with a regional module. The results show that the economy-wide effects of climate change are profound. Planned public adaptation that aims to fully neutralize climate change-induced agricultural productivity shocks may help to avert the aggregate effects but with residual effects. The results also indicate that structural change underpins climate-resilient development as it contributes to dampen the adverse consequences of climate change on aggregate GDP and households’ welfare.

Overview of the Ethiopian Economy.- Economy-Wide and Regional Effects of Climate Change.- Economy-Wide and Regional Effects of Planned Adaptation.- Structural Change and Climate-Resilient Development.

Dr. Amsalu Woldie Yalew is a postdoctoral researcher at Potsdam Institute for Climate Impact Research (PIK), Potsdam, Germany. He is an economist focusing on economic modeling of the nexus between environment and economic development especially in developing countries.