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The Economic Impact of Climate Change on Agriculture in Cameroon

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Type: Working Paper
Author: Molua, Ernest L.; Lambi, Cornelius M.
Date: 2007
Agency:
Series: World Bank Policy Research Working Paper No. 4364
URI: http://hdl.handle.net/10535/6439
Sector: Agriculture
General & Multiple Resources
Region: Africa
Subject(s): climate change
environmental economics--policy
common pool resources
economics--theory
Abstract: "This study examines the impact of climate change on crop farming in Cameroon. The country's economy is predominantly agrarian and agriculture and the exploitation of natural resources remain the driving force for the country's economic development. Fluctuations in national income are due not merely to the decline in world demand for Cameroon's traditional agricultural exports or to mistakes in economic policy making, but also to the vagaries of the weather. Based on a farm-level survey of more than 800 farms, the study employs a Ricardian cross-sectional approach to measure the relationship between climate and the net revenue from crops. Net revenue is regressed on climate, water flow, soil, and economic variables. Further, uniform scenarios assume that only one aspect of climate changes and the change is uniform across the whole country. The analysis finds that net revenues fall as precipitation decreases or temperatures increase across all the surveyed farms. The study reaffirms that agriculture in Cameroon is often limited by seasonality and the availability of moisture. Although other physical factors, such as soil and relief, have an important influence on agriculture, climate remains the dominant influence on the variety of crops cultivated and the types of agriculture practiced."

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