EFFECT OF CARBON BALANCE ON COMPETITIVENESS AND COMPARATIVE ADVANTAGE OF RICE PRODUCTION SYSTEMS IN NIGERIA, WEST AFRICA

Abstract

Rice imports play a significant role in satisfying the high demand for rice in most West African countries including Nigeria. This has made these countries focus more on increased rice production. Climate change is a major issue for the sustainable development goals hence greenhouse gas emissions from rice production systems are of great concern. The study employed the Policy Analysis Matrix (PAM) to assess the effect of carbon balance on the competitiveness and comparative advantage of rice production systems in the northern region of Nigeria. The Ex-Ante Carbon Balance Tool was used to assess the carbon balance of rice production systems. Results of the analysis implied all production systems are competitive and have comparative advantage except for the irrigation system. Incorporation of carbon balance in the economic analysis reduces the comparative advantage of irrigated rice production system further. The study also revealed that the irrigation system benefits more from Government’s policies. It was observed that investing in technologies that would increase productivity will not guarantee low carbon emission hence the need to also go for climate-smart agriculture. This would advance climate-friendly rice production leading to a reduction in greenhouse gas emissions and steady rice supply. This will in turn lessen the necessity for distorting policies.