Effect of Climate Variability on Crop Income in Central Highlands of Ethiopia

  • Arega ShumetieEmail author
  • Kassa Belay
  • Degye Goshu
  • Majaliwa Mwanjalolo
Reference work entry


Ethiopian agriculture is a vulnerable sector to climate variability, wherein this study identified how strong is the effect on smallholders’ crop income in central highland farming system of the country. The study used fixed effect regression to analyze the unbalanced panel data (1994–2014) collected for eight rounds. The model result shows that individual increment in cropping season rainfall or temperature has negative and significant effect on households’ crop income in the farming system. Parallel increment of the two climate variability related inputs had positive and significant effect on crop income. Other variables like flood, frost, storm, and rainfall inconsistency in the onset and cessation time affected households’ crop income negatively and significantly. Similarly, draft power and human labor, which are critical inputs in the crop production of Ethiopian smallholders, have positive and significant effect on crop income as to the model result. Thus, this study recommended that there should be supplementation of rainwater through irrigation, water harvesting, and other activities to have consistent water supply for the crop production. Additionally, long-lasting measures like afforestation should be adopted to counterbalance the negative effect of temperature increment.


Climate variability Smallholder Crop income Rainfall Temperature 


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© Springer Nature Switzerland AG 2020

Authors and Affiliations

  • Arega Shumetie
    • 1
    Email author
  • Kassa Belay
    • 2
  • Degye Goshu
    • 3
  • Majaliwa Mwanjalolo
    • 4
  1. 1.Department of Economics, College of Business and EconomicsHaramaya UniversityHaramayaEthiopia
  2. 2.Pan African University Africa UnionAddis AbabaEthiopia
  3. 3.Department of Economics, Faculty of Business and EconomicsKotebe Metropolitan University (Asso.)Addis AbabaEthiopia
  4. 4.Department of Geography, Geo Informatics and Climatic SciencesCollege of Agriculture and Environmental Science, School of Forestry, Environmental and Geographical Science, Makerere University (Asso.)KampalaUganda

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