Abstract
The study investigated the impact of climate change on yields of leading food crops in Nigeria and assessed the transmission channels of climate shocks to welfare. Long-run causality test, Markov-switching regression and Structural Vector Autoregressive (SVAR) model were used. Long-run causality between climate change and crop yields was not rejected. A rise in temperature by 1% reduces crop yields by -0.12% in the regime of high yield while 1% increase in rainfall increases yields by 0.21% and 0.26%, respectively in high and low yield period. Shocks to welfare is traceable to climate change via crop yields and food prices effect.
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