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The link between regional temperature and regional incomes : Econometric evidence with Sub-National data

Title data

Greßer, Christina ; Meierrieks, Daniel ; Stadelmann, David:
The link between regional temperature and regional incomes : Econometric evidence with Sub-National data.
In: Economic Policy. Vol. 36 (2021) Issue 107 . - pp. 523-550.
ISSN 1468-0327
DOI: https://doi.org/10.1093/epolic/eiab007

Abstract in another language

We study the link between temperature and economic development at the sub-national level, employing cross-sectional data from two distinct sources. In contrast to much of the existing cross-country literature on the temperature-income relationship, our setting allows for the inclusion of country fixed effects. Once we account for country fixed effects, we do not find a statistically robust relationship between regional temperature and three different measures of regional economic development (per capita GDP, nightlights and gross cell production). We also test whether temperature is non-linearly related to regional income (with hotter regions being potentially particularly prone to adverse effects of temperature on income) but find no systematic evidence in favor of such a relationship. Finally, we examine whether the effect of temperature on economic development is especially pronounced in poorer regions (e.g., due to weaker adaptation). Again, we find no statistically robust link.

Further data

Item Type: Article in a journal
Refereed: Yes
Institutions of the University: Faculties > Faculty of Law, Business and Economics
Faculties > Faculty of Law, Business and Economics > Department of Economics
Faculties > Faculty of Law, Business and Economics > Department of Economics > Professor Economic Policy and Development Economics > Professor Economic Policy and Development Economics - Univ.-Prof. Dr. David Stadelmann
Profile Fields > Emerging Fields > Governance and Responsibility
Faculties
Faculties > Faculty of Law, Business and Economics > Department of Economics > Professor Economic Policy and Development Economics
Profile Fields
Profile Fields > Emerging Fields
Result of work at the UBT: Yes
DDC Subjects: 300 Social sciences > 330 Economics
Date Deposited: 01 Mar 2021 12:21
Last Modified: 16 Oct 2024 10:12
URI: https://eref.uni-bayreuth.de/id/eprint/63516