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Climate change impact on labor productivity in Thai manufacture

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  • Kitti Limskul

    (Saitama University)

Abstract

Average labor productivity in the Thai manufacturing sector is hypothesized to have adverse effect from rising temperature. The study applied Business and Manufacturing Census 2012 and found that 10 out of 12 sub-sectors are statistically significant with an expected negative sign. If Thailand would face with climate change volatility, it is projected that the climate change raises temperature from Baseline scenario by 2.5, 5.5, 6.0, and 7.5%, respectively. Present value of the damage of climate change is estimated to be 95,519 million baht in 2020. The loss has increased to 160,335 million baht in 2050 (in current prices). Damage is expected to be 4.63% in 2020 and 3.95% in 2050 of gross output of manufacture (in 2012 prices), respectively. The government may use fiscal and monetary policy to reshape the cost–benefit of investing in the adaptation of roofing and internal air temperature control. The firm is recommended to implement a medical rehabilitation for affected employees at the firm level to avoid relocation and absenteeism of workers.

Suggested Citation

  • Kitti Limskul, 2018. "Climate change impact on labor productivity in Thai manufacture," Asia-Pacific Journal of Regional Science, Springer, vol. 2(1), pages 195-209, April.
    • Handle: RePEc:spr:apjors:v:2:y:2018:i:1:d:10.1007_s41685-018-0073-5
    DOI: 10.1007/s41685-018-0073-5
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    References listed on IDEAS

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    2. E. Somanathan & Rohini Somanathan & Anant Sudarshan & Meenu Tewari, 2021. "The Impact of Temperature on Productivity and Labor Supply: Evidence from Indian Manufacturing," Journal of Political Economy, University of Chicago Press, vol. 129(6), pages 1797-1827.
    3. Marshall Burke & John Dykema & David Lobell & Edward Miguel & Shanker Satyanath, 2011. "Incorporating Climate Uncertainty into Estimates of Climate Change Impacts, with Applications to U.S. and African Agriculture," NBER Working Papers 17092, National Bureau of Economic Research, Inc.
    4. Hübler, Michael & Klepper, Gernot & Peterson, Sonja, 2008. "Costs of climate change: The effects of rising temperatures on health and productivity in Germany," Ecological Economics, Elsevier, vol. 68(1-2), pages 381-393, December.
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    Cited by:

    1. Moriki Hosoe, 2018. "Special issue (part II) on economic analysis of law, politics, and regions," Asia-Pacific Journal of Regional Science, Springer, vol. 2(1), pages 79-82, April.

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    More about this item

    Keywords

    Climate change impact; Temperature rises; Labor productivity; Output loss;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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