Climate Change and Economic Activity: Evidence from U.S. States

Kamiar Mohaddes, Ryan N. C. Ng, Mohammad Pesaran, Mehdi Raissi and Jui-Chung Yang

No 9542, CESifo Working Paper Series from CESifo

Abstract: We investigate the long-term macroeconomic effects of climate change across 48 U.S. states over the period 1963.2016 using a novel econometric strategy which links deviations of temperature and precipitation (weather) from their long-term moving-average historical norms (climate) to various state-specific economic performance indicators at the aggregate and sectoral levels. We show that climate change has a long-lasting adverse impact on real output in various states and economic sectors, and on labour productivity and employment in the United States. Moreover, in contrast to most cross-country results, our within U.S. estimates tend to be asymmetrical with respect to deviations of climate variables (including precipitation) from their historical norms.

Keywords: climate change; economic growth; adaptation; United States (search for similar items in EconPapers)
JEL-codes: C33 O40 O44 O51 Q51 Q54 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-agr, nep-ene, nep-env, nep-gro and nep-his
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Climate change and economic activity: evidence from US states (2023)
Working Paper: Climate Change and Economic Activity: Evidence from U.S. States (2022)
Working Paper: Climate Change and Economic Activity: Evidence from U.S. States (2022)
Working Paper: Climate change and economic activity: Evidence from US states (2022)
Working Paper: Climate change and economic activity: evidence from US states (2022)
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