Climate change mitigation through public finance at the Nairobi coffee exchange
Date
2022
Authors
Twayigize, Felix Junior
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
The famous “coffee belt” or coffee-growing area exists only between the Tropic of Cancer and the Tropic of Capricorn. Due to the rising effects of climate change, its production suitability is projected to decline by half in 2050. In Kenya, coffee-growing zones such as Kiambu and Murang'a are no longer appropriate for the crop. As a result, coffee traders at the Nairobi Coffee Exchange (N.C.E) are experiencing a rise in prices and low quantity supply for trading. This research study aims to propose effective public finance policies to support N.C.E traders in mitigating the effects of climate change. The research methodology is qualitative and the population are N.C.E traders. The sample is composed of coffee marketers (the five coffee brokers approved by the Capital Market Authority of Kenya) and coffee buyers (the top eight coffee exporters in Kenya according to the Kenya Trade Network Agency). Data collection shows that 72% of respondents prefer subsidies as the most suitable public finance policies to help them face the effects of climate change. The study is only focused on the Nairobi Coffee Exchange, which limits the research in giving an overall conclusion that accommodates all coffee players in Kenya. Hence, further studies to be undertaken at a national level are encouraged. The study helps readers understand the effect that global warming will have on their morning coffee cups and aids the Government of Kenya to restructure the coffee industry as part of the country's poverty-reduction strategy. The rising consequences of climate change on the agriculture sector have led to the publication of many studies which provide solutions based on farmers' capabilities such as climate farming techniques, little work has been done to study how the government can use public finance as a tool to tackle the problem. As a result, this research study is unique and needed.
Description
A Research Project Submitted in partial fulfillment of the requirements for the Degree of Bachelor of Commerce at Strathmore University
Keywords
Public Finance, Climate Change