Climate Change, Firms, and Aggregate Productivity

Andrea Caggese, Andrea Chiavari, Sampreet Goraya and Carolina Villegas-Sanchez

No 19164, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper employs a general equilibrium framework to analyze how temperature affects firm-level demand, productivity, and input allocative efficiency, informing aggregate productivity damages due to climate change. Using data from Italian firms and detailed climate data, it uncovers a sizeable negative effect of extreme temperature on firm-level productivity and revenue-based marginal product of capital. Based on these estimates, the model generates aggregate productivity losses higher than previously thought, ranging from 0.60 to 6.82 percent depending on the scenario and the extent of adaptation. Additionally, climate change exacerbates Italian regional disparities.

Keywords: Climate change; Aggregate productivity; Firms; Allocative efficiency (search for similar items in EconPapers)
Date: 2024-06
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP19164 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

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:cpr:ceprdp:19164

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP19164

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().