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The effects of weather conditions on economic growth: Evidence from global subnational economic output and income

Author

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  • Jinchi Dong

    (The State Key Laboratory of Pollution Control and Resource Reuse, School of the Environment, Nanjing ; Department of Economics, Jubilee Building, University of Sussex)

  • Jinnan Wang

    (The State Key Laboratory of Pollution Control and Resource Reuse, School of the Environment, Nanjing University, Nanjing ; Chinese Academy of Environmental Planning, Beijing, China)

  • Bi Jun

    (The State Key Laboratory of Pollution Control and Resource Reuse, School of the Environment, Nanjing University, Nanjing)

  • Richard S.J. Tol

    (Department of Economics, University of Sussex, B91 NSL Falmer, United Kingdom)

Abstract

The effects of weather on economic growth continue to be debated.Previous studies economic output,but income better reflects living standards;income and output are the same at the national level,but differ at a finer spatial scale. This study assembles a unique database comprising global subnational GDP and GDI per capita data from over 1600 regions across more than 180 countries and analyzes the effects of weather conditions on economic growth. There is a significant negative effect of annual mean temperature on income, while weather conditions do not significantly affect output per capita growth. We also find significant interaction effects between weather and weather variability, as well as different adaptations between rich and poor regions.The omission of data from a large number of poor and hot countries in previous subnational research has led to an underestimation of the economic impact of weather shocks.Focusing on output rather than income, previous studies also appear to have underestimated the impact of climate change.

Suggested Citation

  • Jinchi Dong & Jinnan Wang & Bi Jun & Richard S.J. Tol, 2023. "The effects of weather conditions on economic growth: Evidence from global subnational economic output and income," Working Paper Series 0423, Department of Economics, University of Sussex Business School.
    • Handle: RePEc:sus:susewp:0423
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    References listed on IDEAS

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    Cited by:

    1. Tol, Richard S.J., 2024. "A meta-analysis of the total economic impact of climate change," Energy Policy, Elsevier, vol. 185(C).

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    More about this item

    Keywords

    climate change; climate damages; gross domestic product; gross domestic income; panel regression;
    All these keywords.

    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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