Does Drought Increase Carbon Emissions? Evidence from Southwestern China

Jie Yang, Yijing Huang and Kenji Takeuchi
Additional contact information
Jie Yang: University of Toyama
Yijing Huang: Peking University

No 2015, Discussion Papers from Graduate School of Economics, Kobe University

Abstract: This study estimates the impact of the 2009/2010 drought in southwestern China on economic activities and CO2 emissions. We focus on the economic outcomes of the power and energy intensive sectors to investigate the substitution between hydropower and thermal power during this extreme drought. Panel data for 97,387 firms from 2006 to 2013 are used to examine the responses of firms to this extreme climatic event. We find that severe drought reduces hydropower generation, as well as the economic outputs of energy-intensive sectors, while it increases the power generated by coal-fired power plants. As a result, the net emissions of carbon dioxide between 2009 and 2013 increased by 443,425 tons. The findings suggest that climate disasters may increase carbon emissions, thereby posing a threat to further climate change.

Pages: 35 pages
Date: 2020-09
New Economics Papers: this item is included in nep-cna, nep-ene and nep-env
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Citations: View citations in EconPapers (1)

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Journal Article: Does drought increase carbon emissions? Evidence from Southwestern China (2022)
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