Heterogeneous effects of weather shocks on firm economic performance

Romano Tarsia

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper provides novel firm-level estimates of the economic damages caused by temperature shocks to European firms. I rely on a panel data analysis to show wide heterogeneities in the impact of temperature shocks, which depend on firm characteristics. This paper reveals the importance of micro-level data to reduce the uncertainty in climate damages estimates, as the average relationship between temperature and economic outcomes masks firms’ different susceptibilities to weather shocks. These create both winners and losers, harming less productive and smaller firms, particularly those in warmer regions, while benefiting more productive ones. This paper highlights the distributional effects of climate change, and offers insights for targeted adaptation policies.

Keywords: weather; climate change; firms; climate damages; economic performance (search for similar items in EconPapers)
JEL-codes: D24 O13 O14 O52 Q51 Q54 R11 (search for similar items in EconPapers)
Pages: 70 pages
Date: 2024-11-21
New Economics Papers: this item is included in nep-agr, nep-eff and nep-env
References: Add references at CitEc
Citations:

Downloads: (external link)
http://eprints.lse.ac.uk/128533/ Open access version. (application/pdf)

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:ehl:lserod:128533

Access Statistics for this paper

More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC.
Bibliographic data for series maintained by LSERO Manager ().