Climate change and economic activity: evidence from U.S. states


Type
Article
Change log
Authors
Mohaddes, K 
Ng, RNC 
Pesaran, MH 
Raissi, M 
Yang, J-C 
Abstract

We investigate the long-term macroeconomic effects of climate change across 48 U.S. states over the period 1963-2016 using a novel econometric strategy that links deviations of temperature and precipitation (weather) from their long-term moving-average historical norms (climate) to various state-specific economic performance indicators at the aggregate and sectoral levels. We show that climate change has a long-lasting adverse impact on real output in various states and economic sectors, and on labour productivity and employment in the United States. Moreover, in contrast to most cross-country results, our within U.S. estimates tend to be asymmetrical with respect to deviations of climate variables (including precipitation) from their historical norms.

Description
Keywords
Journal Title
Oxford Open Economics
Conference Name
Journal ISSN
2752-5074
Volume Title
Publisher
Oxford University Press (OUP)