Estimating the Consequences of Climate Change from Variation in Weather

Derek Lemoine

No 25008, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Much work seeks to project climate change impacts from quasi-random variation in weather. I formally demonstrate that those projections require strong theoretical restrictions in dynamic environments. I derive an indirect least squares estimator that bounds long-run climate impacts from short-run responses to weather under weaker restrictions. In an application to the U.S. economy, I project that climate change’s effect on daily temperatures will reduce steady-state income per capita by at least 4.2%, over twice what conventional panel approaches project.

JEL-codes: D84 H43 Q54 (search for similar items in EconPapers)
Date: 2018-09
New Economics Papers: this item is included in nep-agr and nep-env
Note: EEE
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Citations: View citations in EconPapers (17)

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Related works:
Working Paper: Estimating the Consequences of Climate Change from Variation in Weather (2021)
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