The impact of climate change on aggregate output in middle‐ and high‐income countries

Murat Doğanlar, Faruk Mike and Oktay Kızılkaya

Australian Economic Papers, 2022, vol. 61, issue 1, 72-86

Abstract: This study aims to analyse the impact of climate change on the aggregate output of middle‐ and high‐income countries by using dynamic panel data analysis for yearly observations from 1990 to 2016. Following the Cobb–Douglas production function, the analyses included key economic parameters which are capital stock, labour force, and total factor productivity, and also climate change indicators namely temperature and precipitation. The generalised method of moments test results revealed different findings for middle‐ and high‐income countries. Both the temperature and precipitation variables had a negative and statistically significant impact on aggregate output for middle‐income countries. In the high‐income countries, the temperature was found to have a positive but negligible effect on aggregate output, whereas precipitation was not found to have any significant effect. Granger causality test is also conducted to check for the consistency of GMM estimation.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/1467-8454.12238

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:ausecp:v:61:y:2022:i:1:p:72-86

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0004-900X

Access Statistics for this article

Australian Economic Papers is currently edited by Daniel Leonard

More articles in Australian Economic Papers from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().