Incidence of Climate on Emerging Economies: Lessons from English's Past

Stéphane Auray, Aurélien Eyquem and Frédéric Jouneau-Sion ()
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Frédéric Jouneau-Sion: Universites Lille Nord de France

Cahiers de recherche from Departement d'économique de l'École de gestion à l'Université de Sherbrooke

Abstract: Evidence from English real wages and real land rents for the period 1500-1800 are used to evaluate the impact of temperature and precipitations on under-developed economies. Estimating key parameters of an AK-growth model, we extract Total Factor Productivity (TFP hereafter) shocks and estimate the impact of temperature and extreme precipitation events (droughts and and flood) on TFP. We produce evidence that a two degree reduction of temperature lowers TFP by 0.1 (one standard deviation of TFP shocks). We also show that, conditionally on temperatures, the impact of floods on TFP is statistically significant while the impact of droughts is not. We consider these results as a useful benchmark to measure the impact of global warming and/or measures intended to contain it on developing economies.

Keywords: Economic growth; Climate; Real wages; Land rents (search for similar items in EconPapers)
JEL-codes: C22 N13 O41 O47 Q54 (search for similar items in EconPapers)
Pages: 8 pages
Date: 2010-01-04, Revised 2010-03-10
New Economics Papers: this item is included in nep-agr, nep-ene and nep-env
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http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-1002.pdf First version, 2010 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:shr:wpaper:10-02

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