The Effects of Climate and Weather on Economic Output: Evidence from Global Subnational Data

2025/05/23 by Dong, Jinchi, Tol, Richard S. J., Wang, Jinnan · 1 citation
#FOS: Economics and business #General Economics (econ.GN)

paper · doi:10.48550/arxiv.2505.17946

Abstract

Estimating the effects of climate on economic output is crucial for formulating climate policy, but current empirical findings remain ambiguous. Using annual panel model and panel long-difference model with global subnational data from nearly all countries, we find robust evidence that weather shocks have a transient effect on output. The impact on economic growth is large and significant in the short-run but statistically insignificant in the long-run, except in the coldest and hottest places.

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