Evaluating the Impact of Land Redistribution: A CGE Microsimulation Application to Zimbabwe

M i n t e w a b B e z a b i h , M u y e y e C h a m b w e r a , a n d J e s p e r S t a g e Environment for DevelopmentThe Environment for Development (EfD) AbstractThis paper analyzes the economic impacts of climate change-induced adjustments on the performance of the Tanzanian economy, using a countrywide CGE (computable general equilibrium) model. The general equilibrium framework enables comparison of the effects of climate change to the overall growth of the economy because responsiveness to shocks is likely to depend on the macroeconomic structure of the economy. Effect of overall climate change on agricultural productivity is projected to be relatively limited until approximately 2030 and become worse thereafter. Our simulation results indicate that, despite the projected reduction in agricultural productivity, the negative impacts can potentially be quite limited. This is because the time scales involved and the low starting point of the economy leave ample time for factor substitutability (i.e., replacing reduced land productivity with increased use of capital and labor) and increased overall productivity. This indicates that policies that give farmers opportunity to invest in autonomous climate adaptation, as well as policies that improve the overall performance of the economy, can be as important for reducing the impacts of climate change in the economy as direct government policies for climate adaptation. The study results can inform policymakers when choosing between direct climate-change adaptation policies or measures aimed at strengthening the fundamentals of the economy, as ways of insulating against external shocks.

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“…Microsimulation models coupled with CGE modeling have been used for this purpose (e.g., Chitiga and Mabugu 2008;Davis 2009). …”

Section: Discussionmentioning

confidence: 99%

Climate change and total factor productivity in the Tanzanian economy

Bezabih¹,

Chambwera²,

Stage³

2011

Climate Policy

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“…The results of the literature review related to the effect of land redistribution on poverty show two results, namely 1) land redistribution has a negative effect on poverty and 2) land redistribution has a positive effect on poverty. There are three studies that conclude that land redistribution has a negative effect on poverty in other words, land redistribution can reduce poverty levels, namely the research of Keswell & Carter (2014), Bonti & Ankomah (2001), and Chitiga & Mabugu (2008). Research conducted by Keswell & Carter (2014) in South Africa aims to see the impact of land redistribution programs for agricultural development using binary treatment and continuous treatment.…”

Section: Research On Land Redistributionmentioning

confidence: 99%

The Effect of Land Reform on Poverty: A Study of Provinces in Indonesia

Dhyatmika

Ismail

Saputra

2022

JICP

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Land is an important part especially for the poor because land is able to provide opportunities for the poor to get out of poverty. Land redistribution is one of the policies aimed at reducing poverty levels. This study uses a literature study and descriptive statistic to see the effect of Land reform in the form of land redistribution on poverty. Based on the results of reviews of previous studies, it was found that most concluded that land redistribution had a negative effect on poverty levels. Studies conducted in Indonesia related to land redistribution confirm the results that land redistribution can reduce poverty levels through increasing income from production in the agricultural sector and access to credit. This implies that land redistribution is the right policy to reduce poverty so that it needs to be increased both in terms of number and accuracy of target recipients.

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“…While the EV is defined as the amount of compensation, that must be added (subtracted) to (from) household initial income, to leave that household as well off as under the combined price and income changes, the CV is the amount of compensation, that must be added (subtracted) to (from) household final income, to leave that household as well off as before the combined price and income changes (see a review of the two concepts in [30]). In this study, the EV is used Following Chitiga and Mabugu [31], the EV can be expressed as:…”

Section: Household Welfare Analysismentioning

confidence: 99%

Economy-Wide Effects of Climate Change in Benin: An Applied General Equilibrium Analysis

et al. 2019

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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 ...

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Evaluating the Impact of Land Redistribution: A CGE Microsimulation Application to Zimbabwe

Cited by 18 publications

References 11 publications

Climate change and total factor productivity in the Tanzanian economy

Climate change and total factor productivity in the Tanzanian economy

The Effect of Land Reform on Poverty: A Study of Provinces in Indonesia

Economy-Wide Effects of Climate Change in Benin: An Applied General Equilibrium Analysis

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