This research analyzes the economic effects of climate change-induced crop yield losses in Benin. As agriculture is a large sector in Benin, the climate change-induced crop yield losses are expected to affect the entire economy as well as household welfare in both rural and urban areas. The paper applies a dynamic general equilibrium model and simulates productivity shocks in the agricultural sector derived from climate change scenarios for Benin. The findings show that climate change-induced crop yield losses reduce domestic agricultural outputs by 4.4% and the nonagricultural output by 0.9% on average by 2025. While export supply decrease by 25.5%, import demand increases by 4.9% on average by 2025. As price of labour and capital decline, household income drop for all household groups by 2.5% on average. Ultimately, household welfare decline for all household groups by 2.7% on average. Rural and particularly poor households are projected to experience the worst adverse effects of climate change-induced crop yield losses. The results show that without adaptive strategies to cope with climate change, economic growth and household welfare will decline even further by 2035 and 2045. Subsequently, the paper suggests that adaptation strategies are needed not only at the national level to overcome the projected negative effects on macroeconomic indicators, but also at household level to enhance the adaptative capacity of households, especially the poor households living in rural areas.In Benin, previous studies showed that yields of major food crops are likely to decline with implications for food security, farm incomes, and household welfare [8,9]. The high potential impact of climate change in Benin is due to the size of the agricultural sector in the economy. As of 2016, agriculture accounts for 23% of the Benin national GDP, 83% of total merchandise exports, and 41% of total employment [10]. Hence, the disruptive effects of climate change in the agricultural sector are felt beyond that sector in the entire economy. There are both direct and indirect effects of climate change on the agricultural sector. Direct effects include changes in agricultural outputs. Indirect effects encompass commodity and factor price changes affecting ultimately household incomes and expenditures.In this paper, the economy-wide implications of climate change in Benin are analyzed and quantified. While vulnerability and adaptation aspects of climate change have been studied in Benin [11][12][13], little is known about its economy-wide effects. In order to capture these effects, the study employs a single-country computable general equilibrium (CGE) model. The CGE framework allows to examine the interdependent links between supply and demand of agricultural products, on the one hand, and between agricultural markets and the rest of the economy, on the other hand [14]. The remainder of this paper is structured as follows: Section 2 presents the existing literature on the economy-wide effects of climate change, while Section 3 describes the ...