Growth at Risk From Climate Change

Michael Kiley

No 2021-054, Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (U.S.)

Abstract: How will climate change affect risks to economic activity? Research on climate impacts has tended to focus on effects on the average level of economic growth. I examine whether climate change may make severe contractions in economic activity more likely using quantile regressions linking growth to temperature. The effects of temperature on downside risks to economic growth are large and robust across specifications. These results suggest the growth at risk from climate change is large—climate change may make economic contractions more likely and severe and thereby significantly impact economic and financial stability and welfare.

Keywords: Climate change; Risk management; GDP at Risk (search for similar items in EconPapers)
JEL-codes: E23 O13 Q54 Q56 (search for similar items in EconPapers)
Pages: 19 p.
Date: 2021-08-09
New Economics Papers: this item is included in nep-agr, 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 (1)

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Related works:
Journal Article: Growth at risk from climate change (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfe:2021-54

DOI: 10.17016/FEDS.2021.054

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