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The macroeconomic cost of climate volatility

Piergiorgio Alessandri, Haroon Mumtaz

arXiv 21 Jul 2021 · Finance — General · 20 citations (OpenAlex)

arXiv:2108.01617 · PDF · DOI · OpenAlex · Extracted main text

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 (ex ante) 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 +1 degree C increase in temperature volatility causes on average a 0.3 percent decline in GDP growth and a 0.7 percent increase in the volatility of GDP. Unlike changes in average temperatures, changes in temperature volatility affect both rich and poor countries.

Citation extraction

47
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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Dell, M., B. F. Jones, and B. A. Olken (2014) What do we learn from the weather? the new climate-economy literature1.00053100%
2Dell, M., B. F. Jones, and B. A. Olken (2012, July) (2012) Temperature shocks and economic growth: Evidence from the last half century0.84333100%
3Donadelli, M., M. Jüppner, A. Paradiso, and C. Schlag (2020) Computing macro-effects and welfare costs of temperature volatility: A structural approach0.73732100%
4Kotz, M., L. Wenz, A. Stechemesser, M. Kalkuhl, and A. Levermann (2021) Day-to-day temperature variability reduces economic growth0.73732100%
linsenmeier2021unmatched citation key linsenmeier20210.73732100%
6Bloom, N (2014) Fluctuations in uncertainty0.64422100%
7Barreca, A., K. Clay, O. Deschenes, M. Greenstone, and J. S. Shapiro (2016) Adapting to climate change: The remarkable decline in the us temperature-mortality relationship over the twentieth century0.64422100%
8Basu, S. and B. Bundick (2017) Uncertainty shocks in a model of effective demand0.64422100%
9Burke, M., S. M. Hsiang, and E. Miguel (2015) Global non-linear effect of temperature on economic production0.64422100%
10Deschênes, O. and M. Greenstone (2011) Climate change, mortality, and adaptation: Evidence from annual fluctuations in weather in the us0.64422100%

Showing the top 10 of 48 scored citations. 1 of these could not be matched to a bibliography entry, so only the citation key is shown.