The economic impact of sea level rise on coastal livelihood in Ghana

Abstract

Rising sea levels is exacerbating coastal floods and threatening the survival of coastal communities. As global sea level rises, the action of waves at higher elevations enhances the likelihood of coastal erosion and already, coastal erosion is causing millions per year for coastal property loss. The situation affects daily livelihood activities and could aggravate problems of unemployment and poverty. The main objective of the study aimed at examining the economic impact of sea level rise on the livelihood of the coastal region in Ghana. Specifically, the study sought to examine the perception and coping capabilities of the people who live in the coastal region. The study again, sought to assess the cost of sea level rise to the coastal region using the willing using their willingness to pay. And finally, to measure the vulnerability to poverty of the people in the coastal region. Survey questionnaire was employed to collect data from the study area notedly, 4 communities in the Ketu South and Keta Municipalities in the volta region of Ghana. The rbiprobit regression model as well as the logistic regression were used to explore the perception and coping capabilities of people in the coastal region. Choice modeling was used to assess the willingness to pay of insurance packages to estimate the cost of sea level rise while a three-step Feasible Least Square (FGLS) estimation procedure was employed to estimate the vulnerability to poverty. The results of the analyses showed that people perceive sea level rise as happening while they perceive climate to be the cause though they are unable to cope with the impact. Location, livelihood activity, displacement, age, income and number of persons in a household significantly affect their perception and coping capabilities. Again, people are willing to pay for insurance packages to help as a form of coping mechanism and building resilience however, male household heads have higher willingness to pay for insurance policies as compared to female household heads. Also, more than half of respondents are vulnerable to extreme poverty while about 99% of respondents are vulnerable to poverty using the upper poverty line. Based on the results obtained, the study recommends that government and respective authorities put in measures to implement coping mechanisms as well as enforcing strengthening existing ones. Respective authorities could consider implanting insurance policies to help deal with losses due to sea level rise while considering subsidizing premiums of insurance packages to ensure victims are able to afford.