Rising Temperature, Nuanced Effects: Evidence from Seasonal and Sectoral Data

Rising Temperature, Nuanced Effects: Evidence from Seasonal and Sectoral Data
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Volume/Issue: Volume 2024 Issue 202
Publication date: September 2024
ISBN: 9798400289248
$20.00
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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Industries - Manufacturing , Environmental Economics , Agribusiness , Climate change , Agricultural sector , Manufacturing , climate change , temperature , economic growth , agriculture

Summary

Using quarterly temperature and sectoral value-added data for a large sample of advanced economies (AEs) and emerging markets and developing economies (EMDEs), this paper uncovers nuanced effects of temperature on economic activity. For EMDEs, hotter spring and summer temperatures reduce growth in real value-added of manufacturing, and most significantly, of agriculture, while a warmer winter boosts it. For advanced countries (AEs), a hotter spring hurts growth in real value-added of all considered sectors: services, manufacturing and agriculture. For both country groups, the negative effect of a hotter spring is larger and more persistent than the positive effect of a warmer winter. Furthermore, the adverse impacts of hotter temperatures in advanced economies have accentuated in recent decades. This result suggests increased vulnerability to rising temperatures.