The impact of climate conditions on economic production. Evidence from a global panel of regions
University of Potsdam · Mercator Research Institute on Global Commons and Climate Change · +2 more institutions
Abstract
We present a novel data set of subnational economic output, Gross Regional Product (GRP), for more than 1500 regions in 77 countries that allows us to empirically estimate historic climate impacts at different time scales. Employing annual panel models, long-difference regressions and cross-sectional regressions, we identify effects on productivity levels and productivity growth. We do not find evidence for permanent growth rate impacts but we find robust evidence that temperature affects productivity levels considerably. An increase in global mean surface temperature by about 3.5°C until the end of the century would reduce global output by 7–14% in 2100, with even higher damages in tropical and poor regions.…
Citation impact
- FWCI
- 74.86
- Percentile
- 100%
- References
- 69
Authors
2Topics & keywords
- Damages
- Productivity
- Economics
- Panel data
- Production (economics)
- Econometrics
- Natural resource economics
- Climate change