Shedding Light on the Local Impact of Temperature

Shedding Light on the Local Impact of Temperature
READ MORE...
Volume/Issue: Volume 2024 Issue 178
Publication date: August 2024
ISBN: 9798400287305
$20.00
Add to Cart by clicking price of the language and format you'd like to purchase
Available Languages and Formats
paperback else
pdf else
epub else
English
Prices in red indicate formats that are not yet available but are forthcoming.
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.

Environmental Economics , Climate change , temperature , economic growth , nighttime lights , B , data description , IMF working paper No , 24/178 , impact of temperature , Google Earth engine , temperature shock , Productivity , Global

Summary

We use a new dataset to estimate the impact of temperature on economic activity at a more geographically and temporally disaggregated level than the existing literature. Analyzing 30-kilometer grid cells at a monthly frequency, temperature has a negative, highly statistically significant, and quantitatively large effect on output: a 1 °C increase in monthly temperature is associated with a 0.77 percent reduction in nighttime lights, a proxy for local economic activity. The effects of even a temporary increase in temperature persist for almost one year after the shock. Increases in temperature have an especially large, negative impact on growth in poorer countries, indicating that they are more vulnerable to the impact of climate change.