A general equilibrium assessment of climate change–induced loss of agricultural productivity in Nepal

Chalise, Sudarshan and Naranpanawa, Athula and Bandara, Jayatilleke S. and Sarker, Tapan ORCID: https://orcid.org/0000-0002-0682-2940 (2017) A general equilibrium assessment of climate change–induced loss of agricultural productivity in Nepal. Economic Modelling, 62. pp. 43-50. ISSN 0264-9993


The impact of climate change on agriculture has been one of the most discussed topics in the literature on climate change. Multi-regional computable general equilibrium (CGE) models have frequently been used to examine the impact of climate change on agriculture. However, these studies do not focus on country-specific issues related to the link between climate change and agriculture. This paper aims to address this gap by investigating the economy-wide impacts of climate change on Nepalese agriculture. Nepal makes an interesting case study as it has one of the most vulnerable agricultural economies in South Asia. This paper develops a comparative static multi-household CGE model to trace the direct and indirect impacts of climate change in Nepal. The results suggest that climate change has a significant negative impact on the overall Nepalese economy due to the induced loss of agricultural productivity. The results further reveal that rural households in Nepal, whose livelihoods primarily depend on subsistence farming, will face additional climate change–induced stresses due to already overstrained poverty and a weak social welfare system. The results indicate an urgent need to mainstream adaptation strategies to lessen the negative impacts of any climate change–induced loss of agricultural productivity in Nepal.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Files associated with this item cannot be displayed due to copyright restrictions.
Faculty/School / Institute/Centre: No Faculty
Faculty/School / Institute/Centre: No Faculty
Date Deposited: 20 Apr 2022 23:03
Last Modified: 28 Apr 2022 03:37
Uncontrolled Keywords: agricultural productivity; Climate change; general equilibrium; impact assessment; Nepal
Fields of Research (2020): 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3502 Banking, finance and investment > 350201 Environment and climate finance
Socio-Economic Objectives (2020): 19 ENVIRONMENTAL POLICY, CLIMATE CHANGE AND NATURAL HAZARDS > 1901 Adaptation to climate change > 190101 Climate change adaptation measures (excl. ecosystem)
Identification Number or DOI: https://doi.org/10.1016/j.econmod.2017.01.014
URI: http://eprints.usq.edu.au/id/eprint/47767

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