The macroeconomic cost of climate volatility
Alessandri, Piergiorgio and Mumtaz, Haroon (2022) The macroeconomic cost of climate volatility. Working Paper. Birkbeck Centre for Applied Macroeconomics, London, UK.
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Abstract
We study the impact of climate volatility on economic growth exploiting data on 133 countries between 1960 and 2019. We show that the conditional (exante) volatility of annual temperatures increased steadily over time, rendering climate conditions less predictable across countries, with important implications for growth. Controlling for concomitant changes in temperatures, a +1oC increase in temperature volatility causes on average a 0.3 per cent decline in GDP growth and a 0.7 per cent increase in the volatility of GDP. Unlike changes in average temperatures, changes in temperature volatility affect both rich and poor countries.
Metadata
| Item Type: | Monograph (Working Paper) |
|---|---|
| Additional Information: | BCAM Working Paper #2202. ISSN: 1745-8587 |
| Keyword(s) / Subject(s): | temperature volatility, economic growth, panel VAR |
| School: | Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School |
| Research Centres and Institutes: | Applied Macroeconomics, Birkbeck Centre for |
| Depositing User: | Isobel Edwards |
| Date Deposited: | 25 Mar 2022 13:51 |
| Last Modified: | 02 Aug 2023 18:15 |
| URI: | https://eprints.bbk.ac.uk/id/eprint/47667 |
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