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Temperature Rising, Growth Descending: Climate Change Impacts on Asian Economies

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  • Nikhil Kaushik
  • Ashish Sharma
  • Poornima Mishra
  • Sunil Kumar

Abstract

This study investigates the impact of temperature and rainfall on economic growth in Asian countries using panel data regression analysis from 1991 to 2021. The results reveal a significant negative relationship between temperature and economic growth, with a 1°C rise leading to a 0.385% reduction in growth. High-temperature countries experience a more significant adverse effect compared to low-temperature countries. However, despite displaying a negative trend, rainfall does not significantly influence economic growth statistically. The study also finds differences in the impact of climate variables across different income groups. Additionally, temperature negatively affects the growth rate of agrarian countries, while rainfall does not significantly influence their growth dynamics. These findings underscore the importance of considering climate change in understanding economic growth and highlight the need for policymakers to prioritize climate risk assessment and adopt appropriate climate change mitigation and resilience strategies in Asian countries. JEL Classification E23, O13, Q54

Suggested Citation

  • Nikhil Kaushik & Ashish Sharma & Poornima Mishra & Sunil Kumar, 2024. "Temperature Rising, Growth Descending: Climate Change Impacts on Asian Economies," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 16(3), pages 295-320, September.
    • Handle: RePEc:sae:emeeco:v:16:y:2024:i:3:p:295-320
    DOI: 10.1177/09749101241242214
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    More about this item

    Keywords

    Climate; climate change risk; economic growth; temperature; rainfall; Asia;
    All these keywords.

    JEL classification:

    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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