Work

Climate Shocks, Cyclones, and Economic Growth: Bridging the Micro-Macro Gap

Year: 2018

Type: report

Abstract: Empirical analyses of climatic event impacts on growth, while critical for policy, have been slow to be incorporated into macroeconomic climate-economy models.This paper proposes a joint empirical-structural approach to bridge this gap for tropical cyclones.First, we review competing empirical approaches in a harmonized global dataset and through a theory lens.Second, we estimate cyclone impacts on structural determinants of growth (productivity, depreciation, fatalities) to quantify a stochastic growth model for 40 vulnerable countries and project welfare effects of climate-driven cyclone risk changes.Third, we compute cyclone impacts on the social cost of carbon in the seminal DICE model.

Source: National Bureau of Economic Research

DOI: 10.3386/w24893

Authors: Laura Bakkensen, Lint Barrage

Institutions: National Bureau of Economic Research, University of Arizona, University of California, Santa Barbara, University of Rhode Island, University of California, Berkeley

Language: English

Topic: Climate Change Policy and Economics

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Climate action, Decent work and economic growth

Open Access status: green

Funders: Brown University, University of Chicago, University of Arizona

OpenAlex ID: W2886976497

Cites: 73

Cited by: 52

Related to: 10