The impact of climate change on economic output across industries in Chile

Karla Hernández and Carlos Madeira

MPRA Paper from University Library of Munich, Germany

Abstract: Using region-industry panel data for Chile over the period 1985 to 2017, we find no effect of precipitation changes on GDP and a negative impact of higher summer temperatures on Agriculture-Silviculture and Fishing. An increase of one Celsius degree in the month of January implies a 3% and 12% GDP reduction in Agriculture and Fishing, respectively. There is also a negative effect of higher temperatures in January on Construction and Electricity, Gas, and Water. Our analysis suggests that climate change did not have a big impact on the Chilean economy during this period. Stress test exercises that select only the negative and statistically significant coefficients imply that the Chilean GDP would fall between -14.8% and -9% in 2050 and between -29.6% and -16.8% in 2100, according to our model.

Keywords: climate change; economic damages from climate change; economic growth; global warming; Chile; Latin America (search for similar items in EconPapers)
JEL-codes: O44 O54 Q51 Q59 R11 (search for similar items in EconPapers)
Date: 2021-12
New Economics Papers: this item is included in nep-agr and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in PLoS ONE 17.4(2022): pp. 1-21

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/118973/1/MPRA_paper_118973.pdf original version (application/pdf)

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:pra:mprapa:118973

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().