The macroeconomic cost of climate volatility

Piergiorgio Alessandri and Haroon Mumtaz

Papers from arXiv.org

Abstract: We study the impact of climate volatility on economic growth exploiting data on 133 countries between 1960 and 2019. We show that the conditional (ex ante) volatility of annual temperatures increased steadily over time, rendering climate conditions less predictable across countries, with important implications for growth. Controlling for concomitant changes in temperatures, a +1 degree C increase in temperature volatility causes on average a 0.3 percent decline in GDP growth and a 0.7 percent increase in the volatility of GDP. Unlike changes in average temperatures, changes in temperature volatility affect both rich and poor countries.

Date: 2021-07, Revised 2022-02
New Economics Papers: this item is included in nep-env, nep-gro, nep-isf and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://arxiv.org/pdf/2108.01617 Latest version (application/pdf)

Related works:
Working Paper: The macroeconomic cost of climate volatility (2022)
Working Paper: The Macroeconomic Cost of Climate Volatility (2021)
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:arx:papers:2108.01617

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators (help@arxiv.org).