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Title
Economic consequences of climate change impacts on the agricultural sector of South Asia: A case study of Sri Lanka
Publication Date
2023-03
Early Online Version
Abstract
<p>Scientific evidence suggests that agriculture will be adversely affected by climate change globally in the near future, with the countries and small islands of South Asia projected to be amongst the most vulnerable. This study uses the ORANI-G-SL, a single-country, static computable general equilibrium model to investigate the economic impacts of climate change-induced agricultural productivity changes on Sri Lanka, as a South Asian case study. In comparison with a baseline scenario, the results show reductions in the output of most agricultural crops will cause increased consumer prices for these agricultural commodities, with a consequential decline in overall household consumption within next few decades. The projected decline in crop production and increases in food prices will enhance the potential for food insecurity. Thus, climate change will negatively impact the overall GDP and most of the macro and microeconomic variables of the Sri Lankan economy. These results highlight the need for future scientific research on climate change adaptation strategies and the importance of developing policy responses to counter adverse effects on agriculture and food security.</p>
Publication Type
Journal Article
Source of Publication
Economic Analysis and Policy, v.77, p. 435-450
Publisher
Elsevier Australia
Socio-Economic Objective (SEO) 2020
2022-12-12
Place of Publication
Australia
ISSN
2204-2296
0313-5926
Fields of Research (FoR) 2020
Socio-Economic Objective (SEO) 2020
Peer Reviewed
Yes
HERDC Category Description
Peer Reviewed
Yes
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