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International Monetary Fund. African Dept.

Niger’s exposure to recurrent shocks, including climate shocks, increases its vulnerability to food insecurity. This paper aims to quantify the combined effects of climate shocks and food insecurity on key economic variables and identify the most effective mitigation policy responses using a general equilibrium model. Results indicate that rural households would be the most affected by a climate shock resulting in a decline in domestic agricultural production, which would reduce their consumption, erode their capital, and thus increase urban-rural inequalities. Simulations show that cash transfers and the reduction of internal mobility costs appear to be more effective in mitigating the impact on households of a climate shock on agricultural production.