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The economic impact of climate in the long run

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  • Richard S.J. Tol

    (Department of Economics, University of Sussex, Falmer, United Kingdom)

Abstract

Early scholars were convinced that geography is destiny, that climate determines the human condition. Current economists by and large argue that institutions are destiny, that the only thing that matters to humans are other human beings. Neither position is tenable. I review the literature and present new empirical evidence that shows that climate does have a significant effect on development, that this effect is mediated by institutions, and that the effect shrinks with affluence.

Suggested Citation

  • Richard S.J. Tol, 2020. "The economic impact of climate in the long run," Working Paper Series 1120, Department of Economics, University of Sussex Business School.
    • Handle: RePEc:sus:susewp:1120
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    More about this item

    Keywords

    climate; development;

    JEL classification:

    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • 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

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