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dc.titleThe Effect of Extreme Heat on Economic Growth: Evidence from Latin America
dc.contributor.authorHoffmann, Bridget
dc.contributor.authorDueñas, Juliana
dc.contributor.authorGoytia, Alejandra
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageLatin America
dc.date.available2024-11-04T00:11:00
dc.date.issue2024-11-04T00:11:00
dc.description.abstractClimate change is projected to increase the frequency and intensity of extremely hot days. We use a panel regression framework at the sub-national (i.e., region) level to identify the effect of extreme heat on economic growth in Latin America accounting for acclimation to the season and to the local climate. Extreme heat has a negative and significant impact on economic growth, and the magnitude of the impact is increasing in the intensity and duration of heat. Our results suggest that the impact of each additional consecutive day of extreme heat is greater than the impact of the prior day. Extreme heat affects economic growth directly in addition to its indirect effect through higher seasonal mean temperatures and extreme heat could account for 34-68% of the total projected reduction in the annual economic growth rate at midcentury due to temperature change. Our results suggest that extreme heat is one potential channel for the documented non-linearity in the impacts of rising mean temperature.
dc.format.extent76
dc.identifier.doihttp://dx.doi.org/10.18235/0013231
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/The-Effect-of-Extreme-Heat-on-Economic-Growth-Evidence-from-Latin-America.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectEconomy
dc.subjectEconomic Development
dc.subjectRevenue Growth
dc.subjectSustainable Growth
dc.subjectClimate Change
dc.subjectEconomic Impact
dc.subject.jelcodeQ5 - Environmental Economics
dc.subject.jelcodeQ54 - Climate • Natural Disasters and Their Management • Global Warming
dc.subject.jelcodeQ51 - Valuation of Environmental Effects
dc.subject.keywordsextreme heat;heat waves;economic growth
idb.identifier.pubnumberIDB-WP-01623
idb.operationRG-K1415
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