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© 2023 International Monetary Fund
SIP/2023/007
IMF Selected Issues Paper
African Department
Economic Effects of Climate Change and Food Insecurity in Niger
Prepared by Diogo Baptista, Yoro Diallo, and Arsène Kaho
Authorized for distribution by Costas Christou
December 2022
IMF Selected Issues Papers are prepared by IMF staff as background documentation for periodic consultations with member countries. It is based on the information available at the time it was completed on December 6, 2022. This paper is also published separately as IMF Country Report No 2023/029.
ABSTRACT: Niger’s exposure to recurrent shocks, including climate shocks, increases its vulnerability to food insecurity. This paper aims to quantify the combined effects of climate shocks and food insecurity on key economic variables and identify the most effective mitigation policy responses using a general equilibrium model. Results indicate that rural households would be the most affected by a climate shock resulting in a decline in domestic agricultural production, which would reduce their consumption, erode their capital, and thus increase urban-rural inequalities. Simulations show that cash transfers and the reduction of internal mobility costs appear to be more effective in mitigating the impact on households of a climate shock on agricultural production.
RECOMMENDED CITATION: Diogo, Baptista; Yoro, Diallo; and Arsene, Kaho. 2022. Economic Effects of Climate Change and Food Insecurity in Niger. IMF Selected Issues Paper SIP/2023/009.
| JEL Classification Numbers: | D50; Q18; Q54 |
| Keywords: | Climate Change; Food Insecurity; General Equilibrium Model; Niger |
| Author’s E-Mail Address: | ds845@cam.ac.uk; ydiallo2@imf.org; akaho@imf.org |
| JEL Classification Numbers: | D50; Q18; Q54 |
| Keywords: | Climate Change; Food Insecurity; General Equilibrium Model; Niger |
| Author’s E-Mail Address: | ds845@cam.ac.uk; ydiallo2@imf.org; akaho@imf.org |
Title Page
SELECTED ISSUES PAPERS
Economic Effects of Climate Change and Food Insecurity in Niger