Climate Change as an Emerging Component of Project Risk in the Agriculture Sector: An Empirical Assessment

Abstract

<p class="1main-text">Conditions of climate change are increasingly affecting projects, especially Agriculture projects, across the world. In this situation, climate change could pose a major risk factor in sectors such as the Agriculture sector. This paper empirically examines climate change indicators as a correlated factor of traditional risk factors. A self-reported questionnaire was used to collect data from 265 farmers affiliated to manufacturing organizations in Accra. Factor Analysis (Principal Components) and Pearson’s correlation test were used to present findings. We found that all indicators of the traditional and climate change factor produced a communality value of not less than 0.50. Moreover the climatic factor significantly correlates with the traditional factors at 5% significance level. It is therefore concluded that climate change is an emerging component of project risks.</p>