The Effects of Weather Shocks on Economic Activity: What are the Channels of Impact?
By S. Mejia, Mićo Mrkaić, Natalija Novta, E. Pugacheva, P. Topalova. Social Science Research Network, 2018
219 citations recorded by the source corpus.
Global temperatures have increased at an unprecedented pace in the past 40 years. This paper finds that increases in temperature have uneven macroeconomic effects, with adverse consequences concentrated in countries with hot climates, such as most low-income countries. In these countries, a rise in temperature lowers per capita output, in both the short and medium term, through a wide array of channels: reduced agricultural output, suppressed productivity of workers exposed to heat, slower investment, and poorer health. In an unmitigated climate change scenario, and under very conservative assumptions, model simulations suggest the projected rise in temperature would imply a loss of around 9 percent of output for a representative low-income country by 2100.
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/887a276e6ae7caca8acb4bd9dbf375a425a52086
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In Economics and Econometrics
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Citations in the corpus
- Climate Change: Macroeconomic Impact and Implications for Monetary Policy (2020, methodology): “7% for each 1°C increase in daily average temperature above 15°C, using variations across counties within the United States over a 40-year period, while Acevedo et al. (2018) found that higher temperatures also have a negative effect on a broader measure of human well-being as measured by the Human ”
- A Meta-Analysis of the Total Economic Impact of Climate Change (2022, background): “…the impact of temperature levels on economic growth: Dell et al. (2012), Burke et al. (2015), Pretis et al. (2018), Henseler and Schumacher (2019), Acevedo et al. (2020) and Kikstra et al. (2021).10 The impact of temperature levels on economic growth numerically dominates the impact of…”