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Weather Shocks and Economic Activity. Evidence from the Philippines

Author

Listed:
  • Pardillo, Marvin

    (Monash University)

Abstract

As global temperatures continue to rise, strategies to mitigate the adverse effects of weather shock events become crucial. While previous studies have analysed the effect of climatic variation on economic activity at the national level, there is a lack of understanding of the developmental effects of weather shocks at the subnational level. This study uses monthly night light data captured by Visible Infrared Imaging Radiometer Suite (VIIRS) and weather data to examine the effect of weather shock events at the municipal level in the Philippines. We find that excesses and shortages in monthly rainfall are associated with a decrease in the level of economic activity. We also find that lower temperatures are associated with an increase in the level of economic activity whereas higher temperatures are associated with a decrease in economic activity.

Suggested Citation

  • Pardillo, Marvin, 2021. "Weather Shocks and Economic Activity. Evidence from the Philippines," Warwick-Monash Economics Student Papers 04, Warwick Monash Economics Student Papers.
    • Handle: RePEc:wrk:wrkesp:04
    as

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    File URL: https://warwick.ac.uk/fac/soc/economics/research/wmesp/manage/4_-_marvin_pardillo.pdf
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    References listed on IDEAS

    as
    1. Marshall Burke & Solomon M. Hsiang & Edward Miguel, 2015. "Global non-linear effect of temperature on economic production," Nature, Nature, vol. 527(7577), pages 235-239, November.
    2. Anna Bruederle & Roland Hodler, 2018. "Nighttime lights as a proxy for human development at the local level," PLOS ONE, Public Library of Science, vol. 13(9), pages 1-22, September.
    3. John Gibson & Susan Olivia & Geua Boe‐Gibson, 2020. "Night Lights In Economics: Sources And Uses," Journal of Economic Surveys, Wiley Blackwell, vol. 34(5), pages 955-980, December.
    4. Martinico-Perez, Marianne Faith G. & Schandl, Heinz & Fishman, Tomer & Tanikawa, Hiroki, 2018. "The Socio-Economic Metabolism of an Emerging Economy: Monitoring Progress of Decoupling of Economic Growth and Environmental Pressures in the Philippines," Ecological Economics, Elsevier, vol. 147(C), pages 155-166.
    5. Acevedo, Sebastian & Mrkaic, Mico & Novta, Natalija & Pugacheva, Evgenia & Topalova, Petia, 2020. "The Effects of Weather Shocks on Economic Activity: What are the Channels of Impact?," Journal of Macroeconomics, Elsevier, vol. 65(C).
    6. J. Vernon Henderson & Adam Storeygard & David N. Weil, 2012. "Measuring Economic Growth from Outer Space," American Economic Review, American Economic Association, vol. 102(2), pages 994-1028, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Philippines ; rainfall shocks ; temperature Shocks and night lights JEL Classification: Q54 ; Q58 ; R12;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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