LONG RUN DETERMINANTS OF CEREAL PRODUCTION IN ETHIOPIA: DOES CO2 EMISSION MATTER?

Journal Title: International Journal of Food and Agricultural Economics - Year 2017, Vol 5, Issue 2

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.

Authors and Affiliations

Solomon Bizuayehu Wassie

Keywords

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  • EP ID EP201319
  • DOI -
  • Views 192
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How To Cite

Solomon Bizuayehu Wassie (2017). LONG RUN DETERMINANTS OF CEREAL PRODUCTION IN ETHIOPIA: DOES CO2 EMISSION MATTER?. International Journal of Food and Agricultural Economics, 5(2), 109-119. https://europub.co.uk/articles/-A-201319