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Temperature and economic activity: evidence from India

Author

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  • Anuska Jain
  • Roisin O'Sullivan
  • Vis Taraz

Abstract

This paper investigates the impact of temperature on economic activity in India, using state-level data from 1980–2015. We estimate that a $1^{\circ }$1∘C increase in contemporaneous temperature (relative to our sample mean) reduces the economic growth rate that year by 2.5 percentage points. The adverse impact of higher temperatures is more severe in poorer states and in the primary sector. Our analysis of lagged temperatures suggests that our effects are driven by the contemporaneous effect of temperature on output; we do not find evidence of a permanent impact of contemporaneous temperatures on future growth rates.

Suggested Citation

  • Anuska Jain & Roisin O'Sullivan & Vis Taraz, 2020. "Temperature and economic activity: evidence from India," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 9(4), pages 430-446, October.
    • Handle: RePEc:taf:teepxx:v:9:y:2020:i:4:p:430-446
    DOI: 10.1080/21606544.2020.1727776
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    Cited by:

    1. Sam Cosaert & Adrián Nieto & Konstantinos Tatsiramos, 2023. "Temperature and Joint Time Use," CESifo Working Paper Series 10464, CESifo.
    2. Sam Cosaert & Adrián Nieto & Konstantinos Tatsiramos, 2023. "Temperature and the Timing of Work," CESifo Working Paper Series 10681, CESifo.
    3. Naveen Kumar & Dibyendu Maiti, 2024. "The Dynamic Causal Impact of Climate Change on Economic Activity - A Disaggregated Panel Analysis of India," Working papers 345, Centre for Development Economics, Delhi School of Economics.
    4. Ling Tan & Kun Zhou & Hui Zheng & Lianshui Li, 2021. "Revalidation of temperature changes on economic impacts: a meta-analysis," Climatic Change, Springer, vol. 168(1), pages 1-19, September.
    5. Harriet Brookes Gray & Vis Taraz & Simon D. Halliday, 2021. "The Impacts of Weather Shocks on Employment Outcomes: Evidence from South Africa," Bristol Economics Discussion Papers 21/752, School of Economics, University of Bristol, UK.

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