Econometrics of Climate Change Variables on the Net Income of Agribusinesses in the Niger Delta Region of Nigeria

Abstract

The study focused on economic influence of climate change variables on net income of agribusinesses, particularly on crop production in Niger Delta region of Nigeria. It estimated and projected economic impacts of rainfall and temperature on the net income of crop farmers. Then it was guided by two research questions and two hypotheses. This study relied on secondary data from 129 previous studies sampled purposively. Data were collected using structured document review guide. Data were analysed using Least square multiple regression and ANOVA statistic to test the tasted null hypotheses. Findings of the study revealed that 69% of the variations in net income of crop production in Niger Delta is as a result of the alterations in rainfall and temperature, as a decrease in rainfall by 1[Formula: see text]mm resulted in decrease in net income by [Formula: see text]4.39[Formula: see text]k while an increase in temperature by 1∘C resulted in decrease in net income by [Formula: see text]6206.40[Formula: see text]k. The expected net income of crop production in Niger Delta is projected to continually decrease, from [Formula: see text]4062.14[Formula: see text][Formula: see text][Formula: see text][Formula: see text]5986.25[Formula: see text]k in the year 2025 to [Formula: see text]631.09[Formula: see text][Formula: see text][Formula: see text]5986.25[Formula: see text]k in the year 2050, based on future values of rainfall and temperature. The null hypotheses tested showed that variability in rainfall and temperature is directly proportional ([Formula: see text]) to the changes in net income of crop production for both estimation and projection in the econometric analysis. Based on the findings and implications of the study, it was recommended among others that climate change impact assessment committees should be set up at rural, state and federal levels to evaluate the impacts, and propose indigenous policies for addressing present and future losses in agribusinesses.

Assessing climate change mitigation and adaptation strategies and agricultural innovation systems in the Niger Delta

“…Several studies (Apata, 2010;Franchito & Rao, 2015;Molua & Lambi, 2007;Pindyck, 2013;Rahman et al, 2017) have highlight the importance of adequate water supply for crop production. Authors like Bannayan et al (2011) and Ikehi et al (2021) further linked level of water availability to profitability of farming businesses and the sustainability of livelihood among rural farmers. Approaches to collection of water for irrigation in the region include construction of dykes and ridges to divert flood water away from cultivated lands when rainfall becomes excess or water bodies overflow their banks Jidauna et al, 2012;Ikehi et al, 2014).…”

“…However, these economic activities are largely influenced by the variability of climate. Reported evidences of climate change in the region include, but are not limited to, increase in temperature, changes in rainfall pattern, high soil temperature leading to crop failure, rising sea levels leading to flooding of farmlands and roads, expansion of the range of tropical diseases leading to crop, animal, and human health hazards (Idrisu, 2016;Ifeanyieze et al, 2016;Ikehi et al, 2021;Ito & Ugbome, 2017;Okringbo & Ominikari, 2017;Osuoha & Fakutiju, 2017;Schick et al, 2018).…”

“…These effects have impacted on farming businesses in the area in varying degrees, and have led to harsh economic implications. As climate change impacts have been reported in studies (Blanc, 2011;Enete, 2014;Ikehi et al, 2021), recommendations are expected to guide farmers in coping with impeding or trending impacts to ensure sustainable farming and better standard of living for the farming families. However, in the Niger Delta susceptibility of agriculture to the impacts of climate change remains high (Nwilo & Olusegun, 2007) adoption levels for suggested strategies seem low (Moram, 2011;Nzeadibe et al, 2012) and crop production output is poor (Ikehi et al, 2021;Okringbo & Ominikari, 2017).…”

The Triple Challenge: Food Security and Vulnerabilities of Fishing and Farming Households in Situations Characterized by Increasing Conflict, Climate Shock, and Environmental Degradation

“…Reported evidence of climate change in the region includes: temperature increases, changes in rainfall patterns, rise in soil temperature, rising sea levels causing flooding of farmlands and roads, and increase in tropical diseases (see [45][46][47]). Oil extraction, oil pollution, gas flaring, and deforestation are the main sources of GHG emissions contributing to changes in the climates around the region [30,34,36,[48][49][50].…”