A1175
Title: Climate variability and input interactions in coffee productivity: Evidence from Sub-Saharan Africa
Authors: Wondim Awoke - National Chung Hsing University (Taiwan)
Chia-Lin Chang - Department of Applied Economics Department of Finance National Chung Hsing University (Taiwan) [presenting]
Jisang Yu - Korea University (Korea, South)
Abstract: An examination is conducted of how climate change affects coffee productivity through its interaction with production inputs across 24 Sub-Saharan African countries over the period 1969 to 2019. Using climate-augmented and climate-dependent cobb-douglas models together with a climate-integrated translog specification, an analysis is performed of how temperature and precipitation jointly influence output and input elasticities. Panel-corrected standard errors are employed to address serial correlation and cross-sectional dependence in long-run panel data. The results show that rising temperatures significantly reduce coffee productivity, while precipitation effects are nonlinear and depend on interactions with production inputs. Importantly, climate stress alters factor returns: labor productivity declines sharply under hotter and wetter conditions, whereas capital becomes more productive, indicating a climate-driven factor substitution mechanism. Estimates from the translog model confirm strong substitutability between labor and capital, while climatic variables act as complements rather than substitutes to conventional inputs. These findings suggest that climate impacts operate primarily through input productivity channels, highlighting the need for climate-adaptive investment, input reallocation, and institutional support to strengthen resilience in climate-vulnerable agricultural systems.
