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Using Weather Data and Climate Model Output in Economic Analyses of Climate Change

Author

Listed:
  • Maximilian Auffhammer
  • Solomon M. Hsiang
  • Wolfram Schlenker
  • Adam Sobel

Abstract

Economists are increasingly using weather data and climate model output in analyses of the economic impacts of climate change. This article introduces weather data sets and climate models that are frequently used, discusses the most common mistakes economists make in using these products, and identifies ways to avoid these pitfalls. We first provide an introduction to weather data, including a summary of the types of data sets available, and then we discuss five common pitfalls that empirical researchers should be aware of when using historical weather data as explanatory variables in econometric applications. We then provide a brief overview of climate models and discuss two common and significant errors often made by economists when climate model output is used to simulate the future impacts of climate change on an economic outcome of interest. (JEL: Q54) Copyright 2013, Oxford University Press.

Suggested Citation

  • Maximilian Auffhammer & Solomon M. Hsiang & Wolfram Schlenker & Adam Sobel, 2013. "Using Weather Data and Climate Model Output in Economic Analyses of Climate Change," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 7(2), pages 181-198, July.
    • Handle: RePEc:oup:renvpo:v:7:y:2013:i:2:p:181-198
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    File URL: http://hdl.handle.net/10.1093/reep/ret016
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    JEL classification:

    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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