Economic Impact Assessment of the Climate Change Impact on the Sector of Agriculture in Montenegro

The impact of climate change on agriculture is pronounced due to the size and sensitivity of the sector. In Montenegro, as in the region, there is no officially defined methodology on the procedure and manner of determining the damage caused by climate change, as well as the methodology for assessing future harmful economic impacts caused by climate change. The aim this paper is to assess future adverse economic impacts caused by climate change over a longer period of time in agricultural sector in Montenegro. In our analysis, we assessed the impact of climate change on grain yields and revenues from their production. In order to include a broader framework of analysis and future assessments, we have conducted an analysis for 4 scenarios. Estimated level of damage of climate change on grain yields ranges from 1.3 to 2.6 million EUR in the scenario until 2050, and 8.3 to 12.3 million EUR until 2100.