The effect of climate change and agricultural diversification on the total value of agricultural output of farm households in Sub-Saharan Africa

Abstract

This study investigates the effect of temperature and precipitation on the economic value of agricultural output from farm households in six Sub-Saharan African countries: Ethiopia, Malawi, Niger, Nigeria, Tanzania and Uganda. Using a repeated cross-sectional dataset covering the period from 2008 to 2016, the study explores how the adverse effects of climate change vary among different levels of agricultural diversification. The findings reveal that a one-degree increase in temperature has a negative effect on the value of agricultural output. Nevertheless, households engaged in diversified production activities exhibit better adaptation to higher temperatures, leading to attenuated effects of climate change. Therefore, this study highlights the critical importance of diversification as a strategy to enhance the resilience of farm households in Sub-Saharan Africa.