THE IMPACT OF CLIMATIC CHANGE ON THE PERFORMANCE AND GROWTH OF THE ETHIOPIAN ECONOMY :TIME SERIES ANALYSIS

Abstract

Climate change has become one of the pressing problems worldwide as it affects socioeconomic activities - agriculture being one of the most vulnerable sectors. Specifically, this study has attempted to evaluate the short-run economic impacts of climate change (change in the levels of temperature and precipitation) with a focus on the Ethiopian economy. In so doing, it uses a multiple regression model based on the pertinent factors of climate changes. In this case a long term consequences of climate change have given the impression that the climate impacts on economic growth as a general result. However, the impact of climate change on Ethiopian economy is likely to be quite small and it is highly affected by humidity and co2 emissions.