Economic Development in Africa in the Face of Climate Change: Evidence and Policy Implications
Abstract:
This paper investigates how climate change affects economic development in Africa, using empirical evidence from cross-country panel data and sectoral analysis. We review the relevant literature, estimate econometric models to gauge the impact of temperature and precipitation changes on GDP growth, and analyze differential sectoral vulnerabilities (especially agriculture). We find robust negative effects of rising temperature on eco nomic growth, with the agricultural sector being particularly sensitive. Moreover, the impacts vary by region, climate zone, and over time, suggesting that adaptation capacity plays a critical role. Policy implications include strengthening climate resilience via adaptation investments, promoting diversification, and integrating climate change into development planning. We conclude that climate change is not only an environmental issue but a major economic development challenge for Africa, requiring coordinated policy responses at national and regional levels. This study examines the empirical relationship between climate change and econom ic development using cross-country panel data and sector-level analysis. Employing dynamic panel models, f ixed-effects regressions, and impulse-response simulations, the results show that rising temperatures signifi cantly reduce GDP growth especially in agriculture which remains the backbone of many African economies. The findings highlight clear policy implications: strengthening adaptation capacity, integrating climate risks into national development plans, enhancing climate finance, and promoting economic diversification. The study concludes that climate change is not merely an environmental issue but an economic one that requires coordinated national and regional responses.
