Research Insights: Do Rising Temperatures Impact Economic Growth?
Peer Reviewed
Date issued
Oct 2019
Subject
Climate Change;
Economic Development;
GDP Growth;
Productivity Level
JEL code
Q51 - Valuation of Environmental Effects;
R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes;
O44 - Environment and Growth;
Q59 - Environmental Economics: Other
Category
Catalogs and Brochures
Seasonal temperatures, particularly summer temperature, have significant and systematic effects on the U.S. economy, both overall and across a wide range of sectors. Seasonal temperature affects output growth by changing labor productivity rather than employment. The effect of summer temperature is strongest in Southern states, where baseline summer temperature is already high.
