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Rising Temperatures, Melting Incomes: Country-Specific Macroeconomic Effects of Climate Scenarios

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  • Mohaddes, K.
  • Raissi, M.

Abstract

We estimate country-specific annual per-capita GDP losses from global warming using the most recent climate scenarios of the Intergovernmental Panel on Climate Change (IPCC) under different mitigation, adaptation, and climate variability assumptions. Our results indicate that without significant mitigation and adaptation efforts, global GDP per capita could decline by up to 24 percent under the high-emissions climate scenarios by 2100. These income losses vary significantly across the 174 countries in our sample, depending on the projected paths of temperatures and their variability.

Suggested Citation

  • Mohaddes, K. & Raissi, M., 2024. "Rising Temperatures, Melting Incomes: Country-Specific Macroeconomic Effects of Climate Scenarios," Cambridge Working Papers in Economics 2429, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:2429
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    References listed on IDEAS

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    1. Kalkuhl, Matthias & Wenz, Leonie, 2020. "The impact of climate conditions on economic production. Evidence from a global panel of regions," Journal of Environmental Economics and Management, Elsevier, vol. 103(C).
    2. Emmanuel Dhyne & Catherine Fuss & M. Hashem Pesaran & Patrick Sevestre, 2011. "Lumpy Price Adjustments: A Microeconometric Analysis," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 29(4), pages 529-540, October.
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    Cited by:

    1. Liu, Lucy Q. & Pan, Dan & Raissi, Mehdi, 2025. "Macroeconomic effects of climate change: Evidence from Canadian provinces," International Economics, Elsevier, vol. 181(C).

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    More about this item

    Keywords

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    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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