Estimating the Consequences of Climate Change from Variation in Weather

Derek Lemoine

No 16194, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: I formally relate the consequences of climate change to the panel variation in weather extensively explored by recent empirical literature. I show that short-run responses to weather shocks differ from long-run responses to climate change when payoffs depend on a capital or resource stock. I develop a new indirect least squares estimator that bounds long-run climate impacts from short-run responses to weather. Applying this new method, I find that an additional 2 degrees Celsius of global warming would eliminate profits from the average acre of current farmland in the eastern U.S.

Keywords: climate; weather; Adaptation; forecasts; agriculture; indirect least squares (search for similar items in EconPapers)
JEL-codes: C23 Q12 Q51 Q54 (search for similar items in EconPapers)
Date: 2021-05
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP16194 (application/pdf)

Related works:
Working Paper: Estimating the Consequences of Climate Change from Variation in Weather (2018)
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:cpr:ceprdp:16194

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP16194

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().