Growth at Risk From Climate Change
Abstract: How will climate change affect risks to economic activity? Research on climate impacts has tended to focus on effects on the average level of economic growth. I examine whether climate change may make severe contractions in economic activity more likely using quantile regressions linking growth to temperature. The effects of temperature on downside risks to economic growth are large and robust across specifications. These results suggest the growth at risk from climate change is largeâ€”climate change may make economic contractions more likely and severe and thereby significantly impact economic and financial stability and welfare.
File(s): File format is application/pdf https://www.federalreserve.gov/econres/feds/files/2021054pap.pdf
Part of Series: Finance and Economics Discussion Series
Publication Date: 2021-08-09