Details

Autor(en) / Beteiligte

• Li, Chengzheng
• Cong, Jiajia
• Gu, Haiying
• Zhang, Peng

Titel

The non-linear effect of daily weather on economic performance: Evidence from China

Ist Teil von

• China economic review, 2021-10, Vol.69, p.101647, Article 101647

Ort / Verlag

Elsevier Inc

Erscheinungsjahr

2021

Link zum Volltext

Quelle

Elsevier ScienceDirect Journals Complete

Beschreibungen/Notizen

• This paper thoroughly examines the impacts of daily weather on the aggregate economic outcomes in China and identifies the underlying channels. Using within-county variations in daily weather between 1996 and 2012, we find that daily temperature and precipitation have non-linear effects on county-level economic outcomes. An additional day with an average temperature above 20 °C reduces county-level GDP by 0.05% to 0.08%, and the detrimental effects tend to intensify when the temperature rises. The precipitation does not have robust effects on county-level GDP. By examining the effects of daily weather on primary, secondary, and tertiary industries, we find that the primary industry is the main channel of the negative impacts of high temperatures. Heavy precipitation is inclined to harm agricultural output, especially grains and oil crop yields. Besides, we discover heterogeneous responses to weather extremes across counties and find suggestive evidence of adaptation. •We examine the impacts of daily weather on aggregate economic outcomes in China and identify the underlying channels.•An additional day with an average temperature above 20°C reduces county-level GDP by 0.05% to 0.08%.•The primary industry is the dominant channel for weather extremes' adverse effects.•Extreme precipitation significantly reduces the output of grains and oil crops.•Different counties have different responses to extreme heat. We find suggestive evidence of adaptation at the county level.•Our study reveals considerable benefits of tackling climate change and advocates climate change policies.