Kotz, M., Wenz, L., Stechemesser, A. et al. Day-to-day temperature variability reduces economic growth. Nat. Clim. Chang. 11, 319–325 (2021)

Objective:

• Test whether the degree of variability in realizations of temperature has an effect on macro-economic outcomes by assessing historical changes to economic data and day to day temperature variability on a global scale

Case:

• Global countries

Methodology:

• Variability index
• Fixed panel regression:

Data Source

• Climate data: ERA5 reanalysis dataset, WFDEI, EWEMBI
• District: GADM
• Population: Global Environment version
• Economic output: FRED, World Bank

Findings:

• Day-to-day temperature variability has a negative impact on regional growth rate
• Countries which experience smaller seasonal temperature differences are affected more by a given changes in day-to-day temperature variability

• The marginal losses from an increase in day-to-day temperature variability are largest in low-latitude and costal regions

• Marginal losses from an increase in day-to-day temperature variability are generally larger for regions in low-income nations compared with those in higher-income nations

Coding Reference:

• Python