EVALUATING CLIMATE CHANGE VULNERABILITIES IN THE ASEAN SERVICE SECTOR

Ingul Baek, Seon-Yong Kim () and Kyungsik Nam ()
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Ingul Baek: Department of Economics, Kongju National University, Gongju-si, Chungcheongnam-do 32588, Republic of Korea
Seon-Yong Kim: Department of Gas Policy Research, Korea Energy Economics Institute, 405-11 Jongga-ro, Jung-gu, Ulsan 44543, Republic of Korea
Kyungsik Nam: Division of Climate Change, Hankuk University of Foreign Studies, Yongin-si 17035, Gyeonggi-do, Republic of Korea

Climate Change Economics (CCE), 2025, vol. 16, issue 04, 1-19

Abstract: This study analyzes the impact of climate change on the service sector in ASEAN economies, using a 40-year panel dataset covering 21 Asia-Pacific countries. Focusing on temperature and precipitation anomalies, we estimate fixed-effects regressions with linear and nonlinear specifications. A sector-wide result shows a significant negative loading on temperature, while precipitation remains insignificant. Sub-sector estimates uncover sharp heterogeneity: Wholesale & Retail Trade, Hotels & Restaurants and Transport, Storage & Communications display robust negative first-order temperature components; Financial & Real Estate exhibits a weak concave response; Community, Social & Personal Services show no discernible effect. These results imply differentiated adaptation priorities. Policymakers should channel resources toward heat-resilient retail, logistics and tourism operations, while monitoring and incremental digitization suffice for the currently less-sensitive service sectors.

Keywords: Climate change; service productivity; business cycles; nonlinearity (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1142/S2010007825500149

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