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Does climate warming affect labour productivity in emerging economies?—Evidence from Chinese-listed firms

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  • Xueqing Liu
  • Kunpeng Zhang
  • Yayun Ren

Abstract

In this study, we match the weather data at the prefecture-level city level in China with the data of listed firms in China, and examine the impact of high-temperature weather on the labour productivity and firm response strategies. We find that high-temperature weather is negatively correlated with labour productivity. The impact is more pronounced in Non-SOEs, heat-sensitive industries, and in the southern region. The additional analysis showed that firms can alleviate the negative impact of high-temperature weather by increasing employee compensation, and carrying out digital transformation. High-temperature weather prompts firms to reduce the number of blue-collar occupations and increase the number of white-collar occupations. This study highlights the urgency of the impact of current climate warming on emerging economies from the perspective of employees, enriches the cross-study of labour and climate economics, and provides suggestions for firms to alleviate the negative impact of high-temperature weather and improve production efficiency.

Suggested Citation

  • Xueqing Liu & Kunpeng Zhang & Yayun Ren, 2023. "Does climate warming affect labour productivity in emerging economies?—Evidence from Chinese-listed firms," Applied Economics, Taylor & Francis Journals, vol. 55(24), pages 2801-2814, May.
    • Handle: RePEc:taf:applec:v:55:y:2023:i:24:p:2801-2814
    DOI: 10.1080/00036846.2022.2106033
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