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Social and economic impacts of climate

Author

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  • Carleton, Tamma A
  • Hsiang, Solomon M

Abstract

For centuries, thinkers have considered whether and how climatic conditions-such as temperature, rainfall, and violent storms-influence the nature of societies and the performance of economies. A multidisciplinary renaissance of quantitative empirical research is illuminating important linkages in the coupled climate-human system. We highlight key methodological innovations and results describing effects of climate on health, economics, conflict, migration, and demographics. Because of persistent "adaptation gaps," current climate conditions continue to play a substantial role in shaping modern society, and future climate changes will likely have additional impact. For example, we compute that temperature depresses current U.S. maize yields by ~48%, warming since 1980 elevated conflict risk in Africa by ~11%, and future warming may slow global economic growth rates by ~0.28 percentage points per year. In general, we estimate that the economic and social burden of current climates tends to be comparable in magnitude to the additional projected impact caused by future anthropogenic climate changes. Overall, findings from this literature point to climate as an important influence on the historical evolution of the global economy, they should inform how we respond to modern climatic conditions, and they can guide how we predict the consequences of future climate changes.

Suggested Citation

  • Carleton, Tamma A & Hsiang, Solomon M, 2016. "Social and economic impacts of climate," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt2vz2d2zz, Department of Agricultural & Resource Economics, UC Berkeley.
  • Handle: RePEc:cdl:agrebk:qt2vz2d2zz
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    Cited by:

    1. Ma, Yu & Zhao, Wenxia & Ding, Zijun, 2025. "Does climate risk influence exchange rates?," Global Finance Journal, Elsevier, vol. 68(C).
    2. Gbenga L. Alawode & Tomiwa V. Oluwajuwon & Festus O. Adegbola & Ayomide O. Oyefara & Oluwapelumi I. Daniel, 2026. "Climate-smart forestry: a review of research trends and implementation approaches," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 31(3), pages 1-31, March.
    3. Yin, Weijun & Liu, Bing & Yao, Dingjun & Chen, Gang, 2025. "Property insurance demand in response to climate risk: The role of green finance, economic policy uncertainty, and non-linearity," Technology in Society, Elsevier, vol. 83(C).
    4. Cowling, Marc & Rahman, Syahirah Abdul & Yang, Huan, 2025. "Do firms invest in energy adaptation? And, if so, why?," Energy Economics, Elsevier, vol. 149(C).
    5. Bakhtiar, M. Mehrab & Karim, Ridwan, 2025. "Threshold effects of extreme heat on schooling and child labor in rural Bangladesh," GSSP working papers 2401, International Food Policy Research Institute (IFPRI).
    6. Dufrénot, Gilles & Ginn, William & Pourroy, Marc, 2026. "Climate change impacts on commodity price stability through changing ENSO patterns," World Development, Elsevier, vol. 197(C).
    7. Meixuan Teng & Yangyang Guo, 2025. "Temperature variations and residential natural gas consumption: do building attributes matter?," Climatic Change, Springer, vol. 178(11), pages 1-18, November.
    8. Olfa Zarrad & Hajer Chibani & Thouraya Jaballah & Kamel Helali, 2026. "Nonlinear climate-economic dynamics in the European union: the role of renewable energy and emissions in temperature-induced growth effects," Letters in Spatial and Resource Sciences, Springer, vol. 19(1), pages 1-29, December.
    9. Khizar Qureshi & H. Oliver Gao, 2026. "Emissions-Robust Portfolios," Papers 2601.06507, arXiv.org.
    10. Bian, Luorao, 2025. "Do microclimates matter? The health impacts of urban heat using fine-scale data," Journal of Environmental Economics and Management, Elsevier, vol. 133(C).
    11. Yu, Zhijian, 2025. "Reluctant participants? Weather extremes and ESG inconsistencies," International Review of Financial Analysis, Elsevier, vol. 106(C).
    12. Mkondiwa, Maxwell & Kishore, Avinash & Veetil, Prakashan Chellattan & Sherpa, Sonam & Saxena, Satyam & Pinjarla, Bhavani & Urfels, Anton & Poonia, Shishpal & Ajay, Anurag & Craufurd, Peter & Malik, Ra, 2025. "Farmers agronomic management responses to extreme drought and rice yields in Bihar, India," Agricultural Water Management, Elsevier, vol. 320(C).
    13. Li, Liqing & Hrozencik, R.Aaron & Rouhi Rad, Mani & Uz, Dilek, 2026. "The impacts of depopulation and climate change on the cost of rural electric services," Journal of Environmental Economics and Management, Elsevier, vol. 135(C).
    14. Li, Yong & Mao, Kun & Gan, Hongwu & Zhou, Yang, 2025. "Climate risk and household stock market participation," China Economic Review, Elsevier, vol. 94(PC).
    15. Tommaso Giommoni & Gabriel Loumeau & Marco Tabellini, 2026. "Extractive Taxation and the French Revolution," IRENE Working Papers 26-02, IRENE Institute of Economic Research.
    16. Fasolin, Guilherme Natan & Valentim, António, 2026. "Climate Change and Political Entry: Evidence from Brazilian Municipal Elections," SocArXiv fp93g_v1, Center for Open Science.
    17. Baldenius, Till & Klauber, Hannah & Koch, Nicolas, 2025. "Heat and experienced racial segregation," Journal of Environmental Economics and Management, Elsevier, vol. 133(C).
    18. Damette, O. & Fajeau, M. & Mathonnat, C., 2026. "Climate shocks and banking sector stability: Evidence from El Niño southern oscillation," Ecological Economics, Elsevier, vol. 239(C).
    19. Roberto Pastén & Eugenio Figueroa & Mayte Fuentes, 2025. "Not a dream wedding: the hidden nexus between gender discrimination, climate change and child marriage," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(11), pages 26845-26864, November.
    20. Christopher W. Callahan & Jared Trok & Andrew J. Wilson & Carlos F. Gould & Sam Heft-Neal & Noah S. Diffenbaugh & Marshall Burke, 2026. "Increasing risk of mass human heat mortality if historical weather patterns recur," Nature Climate Change, Nature, vol. 16(1), pages 26-32, January.
    21. Yiling Chen & Zhiying Su & R. Iestyn Woolway & Niko Wanders & Sijia Wu & Ziwei Huang & Ming Luo, 2026. "Persistent river heatwaves are emerging worldwide under climate change," Nature Communications, Nature, vol. 17(1), pages 1-11, December.
    22. Casoli, Chiara & Manera, Matteo & Pedini, Luca & Valenti, Daniele, 2025. "“It’s not the heat, it’s the humidity!” New Climate Indices for Europe with a Multilevel Factor Model," FEEM Working Papers 376264, Fondazione Eni Enrico Mattei (FEEM).
    23. Kou, Zonglai & Zhao, Wentian & Zhou, Min, 2025. "Fertility impact of intense precipitation in rural areas: The role of income expectation shocks," Economic Modelling, Elsevier, vol. 151(C).

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