This study examines the effect of climate change on the agriculture sector efficiency in selected... more This study examines the effect of climate change on the agriculture sector efficiency in selected Middle Eastern and North African (MENA) countries in the period 1995− 2008. In this study estimate agriculture efficiency by means of Stochastic Frontier Analyses (SFA) and then investigate the impact of climate change on agriculture efficiency by applying panel data method in two stage. First stage examines the impacts of temperature and precipitation and standard precipitation index (SPI) as drought index. In second stages, examines the effect of CO2 emission on efficiency. The results show that efficiency ranges between 41 percent in Egypt and 87 percent in Bahrain. Overall, the analysis shows that agriculture sector, on average, could save 30 percent of their total costs if they were operating efficiently and analysis the climate change variables show the increase in average temperature , SPI index and also CO2 emission will significantly decrease agriculture efficiency while more rainfall increases it in MENA countries. Moreover, it shows the importance of climate change on agricultural efficiency and how temperature, precipitation and CO2 emission play importance role on production efficiency. So the governments must increase investments and upgrading of their budgets on reducing the effect of climate change with regarded to its effect in the region would help farmers to improve their performance in agricultural production.
This study examines the effect of climate change on the agriculture sector efficiency in selected... more This study examines the effect of climate change on the agriculture sector efficiency in selected Middle Eastern and North African (MENA) countries in the period 1995− 2008. In this study estimate agriculture efficiency by means of Stochastic Frontier Analyses (SFA) and then investigate the impact of climate change on agriculture efficiency by applying panel data method in two stage. First stage examines the impacts of temperature and precipitation and standard precipitation index (SPI) as drought index. In second stages, examines the effect of CO2 emission on efficiency. The results show that efficiency ranges between 41 percent in Egypt and 87 percent in Bahrain. Overall, the analysis shows that agriculture sector, on average, could save 30 percent of their total costs if they were operating efficiently and analysis the climate change variables show the increase in average temperature , SPI index and also CO2 emission will significantly decrease agriculture efficiency while more rainfall increases it in MENA countries. Moreover, it shows the importance of climate change on agricultural efficiency and how temperature, precipitation and CO2 emission play importance role on production efficiency. So the governments must increase investments and upgrading of their budgets on reducing the effect of climate change with regarded to its effect in the region would help farmers to improve their performance in agricultural production.
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