The economic impacts of temperature on industrial productivity: Evidence from Indian manufacturing
Year: 2014
Type: report
Abstract: We provide empirical evidence indicating that changes in surface temperatures may directly impact manufacturing output through their impact on worker productivity. We utilize a multi-year panel of manufacturing plants in India, as well as daily worker productivity measures from selected case-study units to show that (i) manufacturing output decreases at high temperatures by 1-3 percent per degree celsius; (ii) this reduction appears to be driven by declining worker productivity. Our results suggest that climate-economy models may underestimate the costs of climate change by neglecting to account for reduced worker productivity. The causal channel we identify could explain a portion of the strong negative correlation observed between temperature and GDP.
Source: Econstor (Econstor)
Authors: Anant Sudarshan, Meenu Tewari
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2883178262