The Economic Impact of Climate in the Long Run

Richard Tol

Chapter 1 in Climate and Development, 2021, pp 3-36 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Early scholars were convinced that geography is destiny and that climate determines the human condition. Current economists by and large argue that institutions are destiny, and that the only thing that matters to humans is other human beings. Neither position is tenable. I review the literature and present new empirical evidence that shows that climate does have a significant effect on development, that this effect is mediated by institutions, and that the effect shrinks with affluence.

Keywords: Climate Change; Global Warming; Sustainable Development; Development; Economic Growth; Adaptation; Paris Agreement; Social Conflict; Extreme Events; Integrated Assessment Model; Climate-Economic Liveability; Sustainable Development Goals; Social Welfare Functions; Intergenerational Transfers; Water Scarcity; Natural Resources; Migration; Climate-Migration Relationship; MENA Region; Renewable Energy; ICT; Energy Efficiency; Carbon Dioxide Removal; Net Negative Emissions; Co-Benefits; Afforestation; Reforestation; Mangroves; Developing Countries; Blue Carbon Projects; Ecosystems; Blockchain Technology; Illegal Logging; Mining Industries; Power Plants; Environmental Economics; Resource Economics; Climate Change Economics; Climate Policy; Mitigation (search for similar items in EconPapers)
JEL-codes: Q5 Q54 Q56 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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Working Paper: The economic impact of climate in the long run (2020)
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