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Economic growth, natural disasters and climate change: New empirical estimates

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  • Ramon Lopez
  • Vinod Thomas
  • Pablo Troncoso

Abstract

This paper analyzes the association between climate change variables and the incidence of intense hydro meteorological disasters within a framework that include global and local climate variables as well as socio-economic factors that aggravate disasters. We have shown that atmospheric carbon dioxide accumulation significantly increases hydro meteorological disasters and that the losses of human capital caused by such disasters induce significant negative effects on the rate of economic growth. A distinctive feature of this research is that the statistical-econometric analysis used considers all reported significant climate-related disasters during the period 1970-2013 in 184 countries, instead of focusing merely on selected disasters, periods or countries as most previous research has done.

Suggested Citation

  • Ramon Lopez & Vinod Thomas & Pablo Troncoso, 2016. "Economic growth, natural disasters and climate change: New empirical estimates," Working Papers wp434, University of Chile, Department of Economics.
    • Handle: RePEc:udc:wpaper:wp434
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    References listed on IDEAS

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    1. Ramón E. López & Vinod Thomas & Pablo Troncoso, 2015. "Climate Change and Natural Disasters," Working Papers wp414, University of Chile, Department of Economics.
    2. Thomas Fomby & Yuki Ikeda & Norman V. Loayza, 2013. "The Growth Aftermath Of Natural Disasters," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 28(3), pages 412-434, April.
    3. World Bank & United Nations, 2010. "Natural Hazards, UnNatural Disasters : The Economics of Effective Prevention," World Bank Publications - Books, The World Bank Group, number 2512, December.
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    7. Benson, C. & Clay, E., 1998. "The Impact of Drought on Sub-Saharan African Economies. A Preliminary Examination," Papers 401, World Bank - Technical Papers.
    8. Vinod Thomas & Jose Albert & Cameron Hepburn, 2014. "Contributors to the frequency of intense climate disasters in Asia-Pacific countries," Climatic Change, Springer, vol. 126(3), pages 381-398, October.
    9. Ramón López & Amparo Palacios, 2014. "Why has Europe Become Environmentally Cleaner? Decomposing the Roles of Fiscal, Trade and Environmental Policies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(1), pages 91-108, May.
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    12. MacKinnon, James G, 1994. "Approximate Asymptotic Distribution Functions for Unit-Root and Cointegration Tests," Journal of Business & Economic Statistics, American Statistical Association, vol. 12(2), pages 167-176, April.
    13. Charlotte Benson & Edward Clay, 1998. "Drought and Sub-Saharan African Economies," World Bank Publications - Reports 9884, The World Bank Group.
    14. James G. MacKinnon, 2010. "Critical Values For Cointegration Tests," Working Paper 1227, Economics Department, Queen's University.
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    Cited by:

    1. Wen, Jun & Zhao, Xin-Xin & Fu, Qiang & Chang, Chun-Ping, 2023. "The impact of extreme weather events on green innovation: Which ones bring to the most harm?," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    2. Vikrant Panwar & Subir Sen, 2019. "Economic Impact of Natural Disasters: An Empirical Re-examination," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 13(1), pages 109-139, February.

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