| Assessing the Economic Impact of Climate Change – National Case Studies |
less than for non-irrigated crops. A preliminary analysis of the Strezevo irrigation area indicates that – if water is not the limiting factor – adaptation through irrigation may be a cost-effective measure even without climate change. This must be analysed on a case-by-case basis. Additional measures such as crop-switching and changing farm management techniques can also improve performances. Building analytical capacity The main recommendation to improve the analytical and institutional capacity for assessing/ analyzing the impact of climate change. Cross-sector collaboration to collect data as well as develop models, tools and resources would improve understanding of the economic, environmental and management aspects of these resources. This will be necessary to better adapt to climate change and to better manage and plan the use of today’s resources. This will require the involvement of Macedonian experts and a strategic decision by the Government to support this analytical capacity-building. Based on these findings the study recommends policy makers to focus policies on: z
Improving energy efficiency
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Ensuring that major investments are climate and resilient, and
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Developing better analytical and institutional capacity to evaluate and manage natural resources.
Executive Summary Climate change is a cross-cutting issue that impacts numerous areas of the economy and society. Changes in temperature will affect energy consumption patterns, crop yields, human health and other areas. Changes in the water cycle will affect energy production, agriculture for rain-fed crops, water availability for irrigation, the forestry industry and other areas. All of these areas are important for economic and social development. For example, within the country: z
Electricity is used widely for heating and cooling, with these two uses accounting for 69% of electricity use in the commercial sector in 2009 and 67% of electricity use in the residential sector in 2009.
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Currently, approximately 20% of all electricity produced in the country comes from hydropower.1
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Agriculture accounts for more than 9 percent of GDP in the country; agriculture plus food processing represents 12 percent of GDP, while food and beverages represent 13 percent of exports.2
Policy-makers must respond to climate change with an approach which is also cross-cutting. This means involving a number of stakeholders in different areas in a coordinated effort.
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1
Ministry of Economy 2010
2
Ministry of Environment and Spatial Planning 2008