The Macroeconomic Cost of Climate Volatility
Piergiorgio Alessandri and
Haroon Mumtaz
Additional contact information
Haroon Mumtaz: Queen Mary University of London
No 928, Working Papers from Queen Mary University of London, School of Economics and Finance
Abstract:
We study the impact of climate volatility on economic growth exploiting data on 133 countries between 1960 and 2005. We show that the conditional (extante) 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 +1oC increase in temperature volatility causes on average a 0.9 per cent decline in GDP growth and a 1.3 per cent increase in the volatility of GDP. Unlike changes in average temperatures, changes in temperature volatility affect both rich and poor countries.
Keywords: temperature volatility; economic growth; panel VAR (search for similar items in EconPapers)
JEL-codes: C32 E32 F34 (search for similar items in EconPapers)
Date: 2021-07-21
New Economics Papers: this item is included in nep-env, nep-gro and nep-mac
References: Add references at CitEc
Citations: View citations in EconPapers (8)
Downloads: (external link)
https://www.qmul.ac.uk/sef/media/econ/research/wor ... wp928_compressed.pdf (application/pdf)
Related works:
Working Paper: The macroeconomic cost of climate volatility (2022) 
Working Paper: The macroeconomic cost of climate volatility (2022) 
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:qmw:qmwecw:928
Access Statistics for this paper
More papers in Working Papers from Queen Mary University of London, School of Economics and Finance Contact information at EDIRC.
Bibliographic data for series maintained by Nicholas Owen ( this e-mail address is bad, please contact ).