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http://dx.doi.org/10.15266/KEREA.2015.24.2.343

Relationship Between Climate Change and Total Factor Productivity  

Choi, Young Jun (Department of International Trade of Kyung Hee University)
Park, Hyun Yong (Trade Research Institute of Kyung Hee University)
Publication Information
Environmental and Resource Economics Review / v.24, no.2, 2015 , pp. 343-363 More about this Journal
Abstract
This study is to analyze the effects of climate change on national total factor productivity. Changes in temperature and rainfalls which are the representative climate variables are used as main factors to measure climate change. Not only average values of the variables but those highest values are used as independent variables in the model, in order to consider the characteristic pattern of recent climate change, the high volatilities. The OLS results are corresponding to previous literature that average temperature has a negative relationship with productivities while average rainfalls have a positive relationship. However, the results of panel analysis contradict the argument of the negative relationship between average temperature and productivities since human beings can adapt the climate change. Therefore adaptation capacity is important to forecast the effects of climate changes on economies.
Keywords
Climate change; Climate variable; Total factor productivity;
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