Economic Assessment of the Impacts of Climate Change in Uganda

The study finds that climate change, characterized by rising temperatures and decreasing rainfall, will likely cause significant economic losses in the Mpanga river catchment, particularly in the energy sector. Annual costs for the energy sector are estimated between US$25 million and US$98 million by 2030-2035, while the water supply sector in the Rushango area may face annual losses of US$45,000 to US$79,000. Adaptation measures, including water resource regulation and energy diversification, are considered high priorities as they only need to offset between 2.8% and 32.8% of estimated losses to be economically justified.

• Climate change modelling for the Mpanga River Basin indicates that temperatures may rise significantly and rainfall may decrease.
• The water supply sector in the Rushango area of the catchment is expected to face the most significant impacts, with annual average economic losses estimated between US$45,000 and US$79,000. These costs could potentially reach US$188,000 depending on future GDP, population scenarios, and willingness to pay.
• The energy sector is projected to bear the highest economic burden, with annual costs estimated at US$25 million to US$98 million by 2030 to 2035. This estimate was derived by adjusting value of lost load data from a study in Kenya for inflation and income differences.
• Adaptation options are considered a high priority because they only need to offset between 2.8% and 32.8% of estimated losses to be economically justified. The most favorable options include promoting water resource regulation for hydropower and conducting further research on climate impacts on the power supply chain.

APA

Climate and Development Knowledge Network (n.d.). Economic Assessment of the Impacts of Climate Change in Uganda. https://cdkn.org/sites/default/files/files/Uganda_CC-Economics_MPANGA_Case-study_Briefing-Note.pdf

Chicago

Climate and Development Knowledge Network. Economic Assessment of the Impacts of Climate Change in Uganda. n.d. https://cdkn.org/sites/default/files/files/Uganda_CC-Economics_MPANGA_Case-study_Briefing-Note.pdf.

Wikipedia

{{cite report |author=Climate and Development Knowledge Network |title=Economic Assessment of the Impacts of Climate Change in Uganda |url=https://cdkn.org/sites/default/files/files/Uganda_CC-Economics_MPANGA_Case-study_Briefing-Note.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climateanddevelopmentknowledgenetworkndeconomic, author = {{Climate and Development Knowledge Network}}, title = {{Economic Assessment of the Impacts of Climate Change in Uganda}}, institution = {Climate and Development Knowledge Network}, url = {https://cdkn.org/sites/default/files/files/Uganda_CC-Economics_MPANGA_Case-study_Briefing-Note.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }