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Abstract
Recent evidence suggests that global climate change is likely to increase the incidence of environmental disasters, as well as the frequency of extreme weather events. As a result, it is generally recognized that climate and weather variability has negative impacts on households’ welfare relying mainly on agriculture. In Ethiopia, 95% of the population depends on rain-fed agriculture and consequently the economic impact of climate change is crucial for small-scale farmers’ food security and welfare. The objective of this study is to provide a comprehensive analysis of the impact of climate change on rural households’ welfare in Ethiopia by using a Quantile Regression (QR) analysis. The main econometric results show that the elasticity of crop income with respect to rainfall varies across quantiles. It is confirmed that there is a non-linear relationship between climatic variables and income.
Notes
1. For a comprehensive survey see Dell et al. [Citation14].
