IDEAS home Printed from https://ideas.repec.org/p/hnb/wpaper/70.html
   My bibliography  Save this paper

What are the short-to-medium-term effects of extreme weather on the Croatian economy?

Author

Listed:
  • Tihana Škrinjarić

    (Hrvatska narodna banka, Hrvatska)

Abstract

This research examines the short-to-medium-term effects of weather changes on the Croatian economy by observing a simple model of an economy that includes changes in extreme weather events. Monthly data from 1999 to 2022 on the growth of the index of industrial production, inflation, energy inflation, changes in the unemployment rate, and selected weather variables is utilized to estimate several Vector Autoregression (VAR) models. The main finding indicates that inflation is mainly affected by weather shocks, especially drought. This means that monetary policy needs to consider this, mainly due to weather extremes being more frequent and of greater magnitudes. Furthermore, the insurance industry could also benefit from such findings due to the first quantification of such results on Croatian data.

Suggested Citation

  • Tihana Škrinjarić, 2023. "What are the short-to-medium-term effects of extreme weather on the Croatian economy?," Working Papers 70, The Croatian National Bank, Croatia.
    • Handle: RePEc:hnb:wpaper:70
    as

    Download full text from publisher

    File URL: http://www.hnb.hr/repec/hnb/wpaper/pdf/w-070.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kepa Solaun & Emilio Cerdá, 2017. "The Impact of Climate Change on the Generation of Hydroelectric Power—A Case Study in Southern Spain," Energies, MDPI, vol. 10(9), pages 1-19, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Turner, Sean W.D. & Hejazi, Mohamad & Kim, Son H. & Clarke, Leon & Edmonds, Jae, 2017. "Climate impacts on hydropower and consequences for global electricity supply investment needs," Energy, Elsevier, vol. 141(C), pages 2081-2090.
    2. Michael Berlemann & Daniela Wenzel, 2018. "Precipitation and Economic Growth," CESifo Working Paper Series 7258, CESifo.

    More about this item

    Keywords

    climate change; weather effects; extreme weather; inflation.;
    All these keywords.

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hnb:wpaper:70. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Romana Sinković (email available below). General contact details of provider: https://www.hnb.hr .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.