Adaptation and the Cost of Rising Temperature for the U.S. economy

Charles Fries (charles.fries@columbia.edu) and Francois Gourio

No WP-2020-08, Working Paper Series from Federal Reserve Bank of Chicago

Abstract: How costly will rising temperature due to climate change be for the U.S. economy? Recent research has used the well-identified response of output to weather to estimate this cost. But agents may adapt to the new climate. We propose a methodology to infer adaptation technology from the heterogeneous responses of output to weather observed currently across the U.S. Our model estimates how much each region has adapted already, and can predict how much each will adapt further after climate change. The size and distribution of losses from climate change vary substantially once adaptation is taken into account.

Keywords: Climate Change; Adaptation; Temperature; Income (search for similar items in EconPapers)
JEL-codes: E23 Q54 R12 (search for similar items in EconPapers)
Pages: 19
Date: 2020-03-05
New Economics Papers: this item is included in nep-env and nep-mac
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Adaptation and the Cost of Rising Temperature for the U.S. Economy (2020)
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DOI: 10.21033/wp-2020-08

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