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(A)symmetry effects of climate changes on economic growth: a panel data analysis

Author

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  • Majid Khan

    (International Islamic University (IIU))

  • Abdul Rashid

    (International Islamic University (IIU))

Abstract

This paper examines the (a)symmetry effects of climate changes on economic growth in 179 countries using panel data over the period 1990–2020. The findings of the linear ARDL model reveal that average changes in most of the climate indicators have detrimental effects on economic growth, whereas mean sea level pressure contributes positively to economic growth during the examined period. Similarly, the influence of extreme values of climatic indicators in the form of minimum temperature, maximum precipitation, and natural disasters dummy used for the flood, drought, storm, and sea-level rise on economic growth is detrimental. Yet, the findings reveal that minimum precipitation significantly enhances economic growth. We also show that both positive and negative mean deviations of temperature and precipitation cause significant reductions in economic growth. Finally, asymmetry effects were also found while investigating the effects of climate change on the economic growth of 6 continents and three regions of 3 major continents.

Suggested Citation

  • Majid Khan & Abdul Rashid, 2022. "(A)symmetry effects of climate changes on economic growth: a panel data analysis," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(4), pages 571-607, December.
    • Handle: RePEc:spr:inrvec:v:69:y:2022:i:4:d:10.1007_s12232-022-00406-3
    DOI: 10.1007/s12232-022-00406-3
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    More about this item

    Keywords

    Economic growth; Temperature; Precipitation; Sea level pressure; Sunshine;
    All these keywords.

    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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