Climate Change's Impact on Developing/Emerging Economies - Case study of Ethiopia

Cătălina-Alexandra Bălan

Bachelor's thesis

Abstract:

This bachelor thesis focuses on how climate change affects the economy of developing countries, specifically the country selected for this work—Ethiopia. Climate change is an existing threat to our entire planet; it is not just an issue of the climate changing, but of everything around us changing. One slight change can lead to another change exasperating the issue and creating complications for the government and the people. When we think of what nations are doing to combat climate change, we picture the developed wealthy nations that tend to give special attention to this issue, however, developing countries are affected as well, most of the time with greater consequences. In-depth research has been done on existing literature regarding climate change and developing countries, as well as on the impacts climate change factors have on these countries, with a specific emphasis placed on the economical and practical issues of Ethiopia that result from climate change. In the practical part of the thesis, a statistical analysis has been done on chosen climate change factors to see if they somehow affect the GDP of Ethiopia. More specifically, the analysis looks at the share that agriculture has in the Ethiopian GDP. A correlation analysis examining both factors shows the exact relationship the variables have on the share of agriculture in GDP. The two mentioned climate change factors are Annual mean temperature and annual precipitation in Ethiopia. Through the use of the correlation analysis, it was found that there is no relationship between annual mean temperature and the share of agriculture in GDP, however, it was also discovered that there is a strong relationship between annual precipitation and the share of agriculture in GDP.

Keywords

Ethiopia, renewable energy, economy, climate change, fossil fuels, developing country

Language used: English

Date on which the thesis was submitted / produced: 19. 3. 2023

Thesis defence

• Date of defence: 22. 5. 2023
• Supervisor: Jared Daniel Jacques
• Reader: John McKeown

Czech University of Life Sciences Prague

Faculty of Economics and Management

Bachelor programme:
Economics and Management