A Unifying Approach to Measuring Climate Change Impacts and Adaptation

Time is of the Essence: Climate Adaptation Induced by Existing Institutions

“…We build upon a unifying approach to estimating climate impacts (Bento et al, 2020) which bridges the two leading approaches of the climate-economy literature -the crosssectional approach to estimate the impact of climate change on economic outcomes (e.g., Mendelsohn, Nordhaus and Shaw, 1994;Schlenker, Hanemann and Fisher, 2005), and the panel fixed-effects approach to estimate the impact of weather shocks (e.g., Deschenes and Greenstone, 2007;Schlenker and Roberts, 2009) -identifying both weather and climate impacts in the same equation. Inspired by Dell, Jones and Olken (2009, 2014, our direct measure of adaptation is the difference between short-run weather responses, which are approximately exclusive of adaptation, and long-run climate responses, which are potentially inclusive of adaptation.…”

“…We leverage a unifying approach to estimate climate impacts, and infer the empirical importance of adaptation induced by existing regulations. We build on Bento et al (2020), and use variation in both weather and climate to uncover the effects of both short-and longrun variation in the same estimating equation. Inspired by Dell, Jones and Olken (2009, 2014, our measure of adaptation is derived directly from the difference between the responses to weather shocks and climatic changes; hence, unlike previous approaches, assessing its statistical significance is straightforward.…”

Time is of the Essence: Climate Adaptation Induced by Existing Institutions

“…We build upon a unifying approach to estimating climate impacts (Bento et al, 2020) which bridges the two leading approaches of the climate-economy literature -the crosssectional approach to estimate the impact of climate change on economic outcomes (e.g., Mendelsohn, Nordhaus and Shaw, 1994;Schlenker, Hanemann and Fisher, 2005), and the panel fixed-effects approach to estimate the impact of weather shocks (e.g., Deschenes and Greenstone, 2007;Schlenker and Roberts, 2009) -identifying both weather and climate impacts in the same equation. Inspired by Dell, Jones and Olken (2009, 2014, our direct measure of adaptation is the difference between short-run weather responses, which are approximately exclusive of adaptation, and long-run climate responses, which are potentially inclusive of adaptation.…”

“…We leverage a unifying approach to estimate climate impacts, and infer the empirical importance of adaptation induced by existing regulations. We build on Bento et al (2020), and use variation in both weather and climate to uncover the effects of both short-and longrun variation in the same estimating equation. Inspired by Dell, Jones and Olken (2009, 2014, our measure of adaptation is derived directly from the difference between the responses to weather shocks and climatic changes; hence, unlike previous approaches, assessing its statistical significance is straightforward.…”