Effects of Climate Change to Industrial Outputs and Employment in Asian Emerging Economies

Sook Ching Kok () and Qaiser Munir ()
Additional contact information
Sook Ching Kok: Universiti Malaysia Sabah

A chapter in Climate Change and Global Development, 2019, pp 83-108 from Springer

Abstract: Abstract It is well-established that climate change can be the result of human activities that create greenhouse gas emissions, which causes the greenhouse effect and further lead to the net effect of global warming. As far as the effects of climate change to human health and outputs of economic sectors are concerned, we can expect there will be negative impacts on output and employment. The objective of this study is to investigate the climate change effects to industrial output and employment in the context of ASEAN, by focusing on six emerging economies, namely, Cambodia, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam for the period of 1989–2016. We use temperature and precipitation as the proxies for climate change. We apply the bounds testing procedure proposed by Pesaran et al. (Journal of Applied Econometrics 16:289–326, 2001) to analyse the cointegration relationship and the autoregressive distributed lag (ARDL) modelling approach of Pesaran and Shin (An autoregressive distributed lag modeling approach to cointegration analysis. In: Strom S (ed) Econometrics and economic theory in the 20th century: the Ragnar Frisch centennial symposium. Cambridge University Press, Cambridge, 1999) and Pesaran et al. (Journal of Applied Econometrics 16:289–326, 2001) for the long-run and short-run relationships between industrial output and employment with the climate change variables. We found long-run relationship between climate change, industrial output and employment in all the countries analysed, except for the industrial output in Vietnam. Further, the long-run and short-run results show some similarities and variations. Our findings allow us to suggest different policy implications for long run and short run based on our results.

Keywords: Greenhouse gases; Greenhouse effect; Global warming; Temperature; Precipitation; Industrial output; Employment; ASEAN emerging economies (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:conchp:978-3-030-02662-2_5

Ordering information: This item can be ordered from
http://www.springer.com/9783030026622

DOI: 10.1007/978-3-030-02662-2_5

Access Statistics for this chapter

More chapters in Contributions to Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().