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ECONOMETRICS OF CLIMATE CHANGE VARIABLES ON THE NET INCOME OF AGRIBUSINESSES IN THE NIGER DELTA REGION OF NIGERIA

M. E. IKEHI

https://orcid.org/0000-0002-2341-7082

Department of Agricultural Education, University of Nigeria, Nsukka, 41001, Enugu State, Nigeria

E-mail Address: michael.ikehi@unn.edu.ng

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F. O. IFEANYIEZE

https://orcid.org/0000-0002-9372-0271

Department of Agricultural Education, University of Nigeria, Nsukka, 41001, Enugu State, Nigeria

E-mail Address: florence.ifeanyieze@unn.edu.ng

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, and

F. M. ONU

Department of Agricultural Education, University of Nigeria, Nsukka, 41001, Enugu State, Nigeria

E-mail Address: Madueke.onu@unn.edu.ng

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https://doi.org/10.1142/S2630534820500096Cited by:3 (Source: Crossref)

Abstract

The study focused on economic influence of climate change variables on net income of agribusinesses, particularly on crop production in Niger Delta region of Nigeria. It estimated and projected economic impacts of rainfall and temperature on the net income of crop farmers. Then it was guided by two research questions and two hypotheses. This study relied on secondary data from 129 previous studies sampled purposively. Data were collected using structured document review guide. Data were analysed using Least square multiple regression and ANOVA statistic to test the tasted null hypotheses. Findings of the study revealed that 69% of the variations in net income of crop production in Niger Delta is as a result of the alterations in rainfall and temperature, as a decrease in rainfall by 1mm resulted in decrease in net income by $- ₦$ 4.39k while an increase in temperature by 1^∘C resulted in decrease in net income by $- ₦$ 6206.40k. The expected net income of crop production in Niger Delta is projected to continually decrease, from $₦$ 4062.14 $\pm$ $₦$ 5986.25k in the year 2025 to $₦$ 631.09 $\pm$ 5986.25k in the year 2050, based on future values of rainfall and temperature. The null hypotheses tested showed that variability in rainfall and temperature is directly proportional ( $p < 0.05$ ) to the changes in net income of crop production for both estimation and projection in the econometric analysis. Based on the findings and implications of the study, it was recommended among others that climate change impact assessment committees should be set up at rural, state and federal levels to evaluate the impacts, and propose indigenous policies for addressing present and future losses in agribusinesses.

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