Selected Issues Papers

Economic Effects of Climate Change and Food Insecurity in Niger: Niger

Author/Editor:

Diogo Miguel Salgado Baptista ; Yoro Diallo ; Arsene Kaho

Publication Date:

February 27, 2023

Electronic Access:

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Summary:

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.

Series:

Selected Issues Paper No. 2023/009

Subject:

International organization Monetary policy

Frequency:

Regular