The Impact of Climate Change on Namibia's Inflation

Gracianu Kavaleka; Vejama Mootu; Postrick Mushendami; Rehabeam Shilimela

doi:doi:10.11648/j.jwer.20261501.15

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The Impact of Climate Change on Namibia's Inflation

Gracianu Kavaleka

, Vejama Mootu

, Postrick Mushendami

, Rehabeam Shilimela

Published in Journal of World Economic Research (Volume 15, Issue 1)

Received: 20 February 2026 Accepted: 14 March 2026 Published: 29 May 2026

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Abstract

This study examines the impact of climate change on inflation dynamics in Namibia, with an extension to the Southern African Customs Union (SACU) region, using a combination of time-series and panel data approaches. For panel analysis, annual data are employed to assess both short- and long-run inflation responses to climate-related variables and capture potential nonlinearities and asymmetric effects using the nonlinear autoregressive distributed lag (NARDL) framework to evaluate the influence of extreme weather events across SACU member states over the period 2005 to 2023. In addition, the study further employed time series data from 1990 to 2023 for country-level analysis. The results indicate that variations in total emissions do not exert a statistically significant effect on inflation in Namibia. In contrast, declines in global precipitation are associated with a persistent and economically meaningful increase in inflation in the long run. Furthermore, adverse precipitation shocks are found to be a significant driver of inflationary pressures in both Namibia and the broader SACU region. These findings suggest that climate-related supply-side disruptions play an increasingly important role in shaping inflation outcomes. Overall, this study highlights the relevance of climate risks for monetary and fiscal policy. Incorporating climate variables into inflation forecasting frameworks may enhance policy calibration, while targeted fiscal and social interventions can help mitigate inflationary effects following climate shocks.

Published in	Journal of World Economic Research (Volume 15, Issue 1)
DOI	10.11648/j.jwer.20261501.15
Page(s)	57-64
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2026. Published by Science Publishing Group

Keywords

Climate Change, Inflation, Precipitation Shocks, NARDL, SACU

References

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APA Style

Kavaleka, G., Mootu, V., Mushendami, P., Shilimela, R. (2026). The Impact of Climate Change on Namibia's Inflation. Journal of World Economic Research, 15(1), 57-64. https://doi.org/10.11648/j.jwer.20261501.15

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ACS Style

Kavaleka, G.; Mootu, V.; Mushendami, P.; Shilimela, R. The Impact of Climate Change on Namibia's Inflation. J. World Econ. Res. 2026, 15(1), 57-64. doi: 10.11648/j.jwer.20261501.15

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AMA Style

Kavaleka G, Mootu V, Mushendami P, Shilimela R. The Impact of Climate Change on Namibia's Inflation. J World Econ Res. 2026;15(1):57-64. doi: 10.11648/j.jwer.20261501.15

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@article{10.11648/j.jwer.20261501.15,
  author = {Gracianu Kavaleka and Vejama Mootu and Postrick Mushendami and Rehabeam Shilimela},
  title = {The Impact of Climate Change on Namibia's Inflation
},
  journal = {Journal of World Economic Research},
  volume = {15},
  number = {1},
  pages = {57-64},
  doi = {10.11648/j.jwer.20261501.15},
  url = {https://doi.org/10.11648/j.jwer.20261501.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20261501.15},
  abstract = {This study examines the impact of climate change on inflation dynamics in Namibia, with an extension to the Southern African Customs Union (SACU) region, using a combination of time-series and panel data approaches. For panel analysis, annual data are employed to assess both short- and long-run inflation responses to climate-related variables and capture potential nonlinearities and asymmetric effects using the nonlinear autoregressive distributed lag (NARDL) framework to evaluate the influence of extreme weather events across SACU member states over the period 2005 to 2023. In addition, the study further employed time series data from 1990 to 2023 for country-level analysis. The results indicate that variations in total emissions do not exert a statistically significant effect on inflation in Namibia. In contrast, declines in global precipitation are associated with a persistent and economically meaningful increase in inflation in the long run. Furthermore, adverse precipitation shocks are found to be a significant driver of inflationary pressures in both Namibia and the broader SACU region. These findings suggest that climate-related supply-side disruptions play an increasingly important role in shaping inflation outcomes. Overall, this study highlights the relevance of climate risks for monetary and fiscal policy. Incorporating climate variables into inflation forecasting frameworks may enhance policy calibration, while targeted fiscal and social interventions can help mitigate inflationary effects following climate shocks.
},
 year = {2026}
}

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TY  - JOUR
T1  - The Impact of Climate Change on Namibia's Inflation

AU  - Gracianu Kavaleka
AU  - Vejama Mootu
AU  - Postrick Mushendami
AU  - Rehabeam Shilimela
Y1  - 2026/05/29
PY  - 2026
N1  - https://doi.org/10.11648/j.jwer.20261501.15
DO  - 10.11648/j.jwer.20261501.15
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
SP  - 57
EP  - 64
PB  - Science Publishing Group
SN  - 2328-7748
UR  - https://doi.org/10.11648/j.jwer.20261501.15
AB  - This study examines the impact of climate change on inflation dynamics in Namibia, with an extension to the Southern African Customs Union (SACU) region, using a combination of time-series and panel data approaches. For panel analysis, annual data are employed to assess both short- and long-run inflation responses to climate-related variables and capture potential nonlinearities and asymmetric effects using the nonlinear autoregressive distributed lag (NARDL) framework to evaluate the influence of extreme weather events across SACU member states over the period 2005 to 2023. In addition, the study further employed time series data from 1990 to 2023 for country-level analysis. The results indicate that variations in total emissions do not exert a statistically significant effect on inflation in Namibia. In contrast, declines in global precipitation are associated with a persistent and economically meaningful increase in inflation in the long run. Furthermore, adverse precipitation shocks are found to be a significant driver of inflationary pressures in both Namibia and the broader SACU region. These findings suggest that climate-related supply-side disruptions play an increasingly important role in shaping inflation outcomes. Overall, this study highlights the relevance of climate risks for monetary and fiscal policy. Incorporating climate variables into inflation forecasting frameworks may enhance policy calibration, while targeted fiscal and social interventions can help mitigate inflationary effects following climate shocks.

VL  - 15
IS  - 1
ER  -

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Author Information

Gracianu Kavaleka

Research Department, Bank of Namibia, Windhoek, Namibia

Contact Email

http://orcid.org/0009-0008-0107-3371
Vejama Mootu

Research Department, Bank of Namibia, Windhoek, Namibia

Contact Email

http://orcid.org/0009-0003-1209-2563
Postrick Mushendami

Research Department, Bank of Namibia, Windhoek, Namibia

Contact Email

http://orcid.org/0000-0003-2426-1312
Rehabeam Shilimela

Research Department, Bank of Namibia, Windhoek, Namibia

Contact Email

http://orcid.org/0009-0005-2726-7244

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APA Style

Kavaleka, G., Mootu, V., Mushendami, P., Shilimela, R. (2026). The Impact of Climate Change on Namibia's Inflation. Journal of World Economic Research, 15(1), 57-64. https://doi.org/10.11648/j.jwer.20261501.15

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ACS Style

Kavaleka, G.; Mootu, V.; Mushendami, P.; Shilimela, R. The Impact of Climate Change on Namibia's Inflation. J. World Econ. Res. 2026, 15(1), 57-64. doi: 10.11648/j.jwer.20261501.15

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AMA Style

Kavaleka G, Mootu V, Mushendami P, Shilimela R. The Impact of Climate Change on Namibia's Inflation. J World Econ Res. 2026;15(1):57-64. doi: 10.11648/j.jwer.20261501.15

Copy | Download

@article{10.11648/j.jwer.20261501.15,
  author = {Gracianu Kavaleka and Vejama Mootu and Postrick Mushendami and Rehabeam Shilimela},
  title = {The Impact of Climate Change on Namibia's Inflation
},
  journal = {Journal of World Economic Research},
  volume = {15},
  number = {1},
  pages = {57-64},
  doi = {10.11648/j.jwer.20261501.15},
  url = {https://doi.org/10.11648/j.jwer.20261501.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20261501.15},
  abstract = {This study examines the impact of climate change on inflation dynamics in Namibia, with an extension to the Southern African Customs Union (SACU) region, using a combination of time-series and panel data approaches. For panel analysis, annual data are employed to assess both short- and long-run inflation responses to climate-related variables and capture potential nonlinearities and asymmetric effects using the nonlinear autoregressive distributed lag (NARDL) framework to evaluate the influence of extreme weather events across SACU member states over the period 2005 to 2023. In addition, the study further employed time series data from 1990 to 2023 for country-level analysis. The results indicate that variations in total emissions do not exert a statistically significant effect on inflation in Namibia. In contrast, declines in global precipitation are associated with a persistent and economically meaningful increase in inflation in the long run. Furthermore, adverse precipitation shocks are found to be a significant driver of inflationary pressures in both Namibia and the broader SACU region. These findings suggest that climate-related supply-side disruptions play an increasingly important role in shaping inflation outcomes. Overall, this study highlights the relevance of climate risks for monetary and fiscal policy. Incorporating climate variables into inflation forecasting frameworks may enhance policy calibration, while targeted fiscal and social interventions can help mitigate inflationary effects following climate shocks.
},
 year = {2026}
}

Copy | Download

TY  - JOUR
T1  - The Impact of Climate Change on Namibia's Inflation

AU  - Gracianu Kavaleka
AU  - Vejama Mootu
AU  - Postrick Mushendami
AU  - Rehabeam Shilimela
Y1  - 2026/05/29
PY  - 2026
N1  - https://doi.org/10.11648/j.jwer.20261501.15
DO  - 10.11648/j.jwer.20261501.15
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
SP  - 57
EP  - 64
PB  - Science Publishing Group
SN  - 2328-7748
UR  - https://doi.org/10.11648/j.jwer.20261501.15
AB  - This study examines the impact of climate change on inflation dynamics in Namibia, with an extension to the Southern African Customs Union (SACU) region, using a combination of time-series and panel data approaches. For panel analysis, annual data are employed to assess both short- and long-run inflation responses to climate-related variables and capture potential nonlinearities and asymmetric effects using the nonlinear autoregressive distributed lag (NARDL) framework to evaluate the influence of extreme weather events across SACU member states over the period 2005 to 2023. In addition, the study further employed time series data from 1990 to 2023 for country-level analysis. The results indicate that variations in total emissions do not exert a statistically significant effect on inflation in Namibia. In contrast, declines in global precipitation are associated with a persistent and economically meaningful increase in inflation in the long run. Furthermore, adverse precipitation shocks are found to be a significant driver of inflationary pressures in both Namibia and the broader SACU region. These findings suggest that climate-related supply-side disruptions play an increasingly important role in shaping inflation outcomes. Overall, this study highlights the relevance of climate risks for monetary and fiscal policy. Incorporating climate variables into inflation forecasting frameworks may enhance policy calibration, while targeted fiscal and social interventions can help mitigate inflationary effects following climate shocks.

VL  - 15
IS  - 1
ER  -

Copy | Download