The impact of climate conditions on economic production. Evidence from a global panel of regions

Kalkuhl, Matthias; Wenz, Leonie

doi:10.1016/j.jeem.2020.102360

Cited by 281 publications

(280 citation statements)

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“…Other studies (e.g., Antonakakis and Badinger, 2016;Berg et al, 2011;Dabla-Norris and Gündüz, 2014;Junior et al, 2021;Loayza et al, 2007) have reported negative effects of adverse shocks on economic growth. Additionally, weather shocks and natural disasters (including severe ones) can adversely affect economic growth, through inter alia, lower investment, lower labor productivity, poorer human health, and lower agricultural and industrial output (e.g., Acevedo et al, 2020;Alba et al, 2011;Fomby et al, 2013;Gavin and Hausmann, 1998;Kalkuhl and Wenz, 2020;Klomp and Valckx, 2014;Loayza et al, 2012). Nevertheless, moderate disasters (such as moderate floods) can have a positive economic growth effect in some sectors (see Fomby et al, 2013;Loayza et al, 2012).…”

Section: Discussion On the Effect Of Structural Economic Vulnerability On Economic Growthmentioning

confidence: 99%

Productive Capacities, Economic Growth and Economic Growth Volatility in Developing Countries: Does Structural Economic Vulnerability Matter?

Gnangnon¹

2021

Preprint

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Recent years' global shocks (e.g., the 2008 financial crisis and the COVID-19 pandemic) and environmental shocks - such as natural disasters - have heightened the vulnerability of developing countries to future shocks, and can compromise their development prospects. International institutions and researchers have advocated that the strengthening of productive capacities in these countries would help them enhance the resilience of their economies to shocks, and promote sustainable development. The present paper has examined the effect of productive capacities on economic growth and economic growth volatility in developing countries, in particular when they face a high level of structural economic vulnerability. The analysis covers 117 developing countries over the period 2000-2018. It shows that productive capacities do not only promote economic growth, but also reduce economic growth volatility. On the other hand, structural economic vulnerability reduces economic growth, in particular when it exceeds a certain level, and induces greater volatility of economic growth. Interestingly, the findings suggest that productive capacities promote economic growth and reduce economic growth volatility in countries that face a high degree of structural economic vulnerability. These findings support the recommendation by international institutions and researchers that if they were to enhance the resilience of their economies to shocks, and promote sustainable economic growth, developing countries (in particular the poorest ones) should strengthen their productive capacities.

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Section: Discussion On the Effect Of Structural Economic Vulnerability On Economic Growthmentioning

confidence: 99%

Productive Capacities, Economic Growth and Economic Growth Volatility in Developing Countries: Does Structural Economic Vulnerability Matter?

Gnangnon¹

2021

Preprint

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“…A Pigouvian tax on carbon emissions has to be set equal to the social cost of carbon (SCC), which refers to the discounted marginal damages from a marginal increase in carbon emissions along a pre-defined emission path. Uncertainties about the social cost of carbon are considerable, with values from well-established integrated assessment models (IAMs) ranging from 7 US$/tCO 2 in FUND (Waldhoff et al 2011), to 31 US$/tCO 2 in DICE (Nordhaus 2017) and much higher values exceeding 100 US$/tCO 2 obtained from recent econometric analyses (e.g., Kalkuhl and Wenz 2020;Ricke et al 2018) or expert surveys (Pindyck 2019). In addition to uncertainties with respect to the climate system, technologies or climate damages (Gillingham et al 2018), the SCC strongly depends on normative choices regarding discount rates (Nordhaus 2017) and equity weights (Adler et al 2017;Anthoff and Emmerling 2018).…”

Section: Uncertainties About Marginal Benefits Eg the Social Cost Of Carbonmentioning

confidence: 99%

“…1 Effective carbon prices resulting from existing excise taxes, duties and carbon prices on fossil energy. Source: own figure based on OECD’s effective carbon rate data in Kalkuhl et al ( 2018 ) and temperature-related social costs of carbon (Kalkuhl and Wenz, 2020 ). Note that subsidies on fossil fuels are not included in this figure …”

Section: Introductionmentioning

confidence: 99%

“…1 Effective carbon prices resulting from existing excise taxes, duties and carbon prices on fossil energy. Source: own figure based on OECD's effective carbon rate data in Kalkuhl et al (2018) and temperature-related social costs of carbon (Kalkuhl and Wenz, 2020). Note that subsidies on fossil fuels are not included in this figure impact assessments of social costs and benefits of policy proposals, the latter have rarely resulted in taxes that conform to Pigouvian pricing principles.…”

Section: Introductionmentioning

confidence: 99%

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Pigou in the 21st Century: a tribute on the occasion of the 100th anniversary of the publication of The Economics of Welfare

Edenhofer

Franks

Kalkuhl

2021

Int Tax Public Finance

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The year 2020 marks the centennial of the publication of Arthur Cecil Pigou’s magnum opus The Economics of Welfare. Pigou’s pricing principles have had an enduring influence on the academic debate, with a widespread consensus having emerged among economists that Pigouvian taxes or subsidies are theoretically desirable, but politically infeasible. In this article, we revisit Pigou’s contribution and argue that this consensus is somewhat spurious, particularly in two ways: (1) Economists are too quick to ignore the theoretical problems and subtleties that Pigouvian pricing still faces; (2) The wholesale skepticism concerning the political viability of Pigouvian pricing is at odds with its recent practical achievements. These two points are made by, first, outlining the theoretical and political challenges that include uncertainty about the social cost of carbon, the unclear relationship between the cost–benefit and cost-effectiveness approaches, distributional concerns, fragmented ministerial responsibilities, an unstable tax base, commitment problems, lack of acceptance and trust between government and citizens as well as incomplete international cooperation. Secondly, we discuss the recent political success of Pigouvian pricing, as evidenced by the German government’s 2019 climate policy reform and the EU’s Green Deal. We conclude by presenting a research agenda for addressing the remaining barriers that need to be overcome to make Pigouvian pricing a common political practice.

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“…There is a robust literature focused on climate change and the subsequent need for regional adaptation in response to climate patterns. Kalkuhl and Wenz (2020) examine economic output over time for 1500-plus regions within 77 countries. The authors conclude that increases in regional mean surface temperatures lead to substantively lower productivity levels.…”

Section: How Weather Affects Work Hoursmentioning

confidence: 99%

Winter weather and work hours: Heterogeneous effects and regional adaptation

Liu

Hirsch

2021

Contemporary Economic Policy

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We examine how work hours reported in the Current Population Survey vary with snowfall in 265 metropolitan areas during 2004–2014. The effects of snowfall on work vary across types of workers, occupation, industry, and region. Regions adapt to inclement weather. Losses in work hours from snow events are particularly large in Southern states and among construction workers. An average daily inch of snowfall during a week reduces work by an hour. Few of the hours lost are “made‐up” in subsequent weeks. A “back‐of‐an‐envelope” calculation suggests that in average years, snow reduces annual hours worked by 0.15%.

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The impact of climate conditions on economic production. Evidence from a global panel of regions

Cited by 281 publications

References 50 publications

Productive Capacities, Economic Growth and Economic Growth Volatility in Developing Countries: Does Structural Economic Vulnerability Matter?

Productive Capacities, Economic Growth and Economic Growth Volatility in Developing Countries: Does Structural Economic Vulnerability Matter?

Pigou in the 21st Century: a tribute on the occasion of the 100th anniversary of the publication of The Economics of Welfare

Winter weather and work hours: Heterogeneous effects and regional adaptation

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