Abstract:
The economic landscape of most African countries depends essentially on the dynamics
of climate change. Key sectors driving their economic performance and livelihoods
such as agriculture, forestry, energy, tourism, coastal and water resources are highly
vulnerable to climate change. This article examines the empirical linkage between economic
growth and climate change in Africa. Using annual data for 34 countries from
1961 to 2009, we find a negative impact of climate change on economic growth. Our
results show that a 1°C increase in temperature reduces gross domestic product
(GDP) growth by 0.67 percentage point. Evidence from sensitivity analysis shows the
two largest economies in the Sub-Saharan Africa (Nigeria and South Africa) play a significant
role in ameliorating the negative economic impact of climate change in the
region. In addition to impact on Africa, this article provides estimates of the impact of
climate change on GDP growth of these 34 countries, which can be valuable in appraising
national adaptation plans.We do not find evidence that average long-run temperature
changes affect long-run economic growth as measured by 5 year averages.
