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GTAP Resource #4411

"Forest carbon sequestration incentive and poverty: evidence from Ethiopia"
by Hussein, Zekarias and Terrie Walmsley

Much of the debate on climate change is now focused on finding ways to halt, and if possible, reverse the level of greenhouse gas (GHGs) emissions in the atmosphere. This has led to a plethora of policies designed as a mitigating strategy and for adapting to a world with warmer climate. Two sectors that have received considerable attention in this regard are agriculture and forestry. This is not without a reason. Land use change (18.2 percent) and agriculture (13.5 percent) together create nearly one-third of greenhouse gas emissions, globally, and the share of these kinds of emissions is far larger in developing countries (Baumert et al, 2009). It seems therefore that achieving significant GHG emission reduction will have to involve agriculture and land use change. The evidence suggests that the total potential savings from various agricultural and land use change activities is substantial and is achievable at a reasonable cost. Coincidentally, rural poverty and remaining natural forests in developing countries tend to share overlapping space. The World Bank has observed that a large share of people suffering from extreme poverty live on or close to the forest ecosystems (World Bank, 2003). This presents a significant challenge to policy makers as there is a need to clearly understand and harness the interactions between climate change mitigation/adaptation efforts and poverty alleviation. The paper will examine the direct and indirect effects of climate change mitigation policies aimed at the agricultural and forestry sectors, and hence at the poor in Ethiopia. The policy examined assumes that wealthier nations provide Ethiopia with foreign aid in return for setting aside agricultural land. We use a global applied general equilibrium model (Walmsley and Minor, 2012) that facilitates more detailed analysis of household incomes and differential consumption patterns to examine the impact of the mitigation policy and to investigate options for distributing the ...

Resource Details (Export Citation) GTAP Keywords
Category: 2014 Conference Paper
Status: Published
By/In: Presented at the 17th Annual Conference on Global Economic Analysis, Dakar, Senegal
Date: 2014
Created: Hussein, Z. (4/14/2014)
Updated: Hussein, Z. (7/15/2014)
Visits: 1,352
- Climate change policy
- Economic analysis of poverty
- Africa (East)

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