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Drying out: Investigating the economic effects of drought in New Zealand

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In early 2013 New Zealand suffered its worst drought in decades. Using several new aggregate climate indicators and a newly-developed model, we estimate the economic impact of the drought. Annual real GDP in 2013 could be around 0.6 per cent lower than it would otherwise have been.

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  • Güneş Kamber & Chris McDonald & Gael Price, 2013. "Drying out: Investigating the economic effects of drought in New Zealand," Reserve Bank of New Zealand Analytical Notes series AN2013/02, Reserve Bank of New Zealand.
    • Handle: RePEc:nzb:nzbans:2013/02
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    Cited by:

    1. Günes Kamber & Gabriela Nodari & Benjamin Wong, 2016. "The Impact of Commodity Price Movements on the New Zealand Economy," Reserve Bank of New Zealand Analytical Notes series AN2016/05, Reserve Bank of New Zealand.
    2. Stojkov Katarina & Noy Ilan & Sağlam Yiğit, 2018. "The Trade Impacts of a Food Scare: The Fonterra Contamination Incident," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 16(2), pages 1-16, November.
    3. Monica Billio & Roberto Casarin & Enrica De Cian & Malcolm Mistry & Anthony Osuntuyi, 2020. "The impact of Climate on Economic and Financial Cycles: A Markov-switching Panel Approach," Papers 2012.14693, arXiv.org.
    4. Dean Ford & Amy Wood, 2015. "El Niño and its impact on the New Zealand economy," Reserve Bank of New Zealand Analytical Notes series AN2015/07, Reserve Bank of New Zealand.
    5. Rebecca Williams, 2017. "Business cycle review: 2008 to present day," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 80, pages 1-22, March.
    6. Farnaz Pourzand & Ilan Noy & Yigit Saglam, 2019. "Droughts and farms' financial performance in New Zealand: a micro farm-level study," CESifo Working Paper Series 7633, CESifo.
    7. Lisa Doyle & Ilan Noy, 2015. "The short-run nationwide macroeconomic effects of the Canterbury earthquakes," New Zealand Economic Papers, Taylor & Francis Journals, vol. 49(2), pages 134-156, August.
    8. Miles Parker, 2018. "The Impact of Disasters on Inflation," Economics of Disasters and Climate Change, Springer, vol. 2(1), pages 21-48, April.
    9. Richhild Moessner, 2022. "Effects of Precipitation on Food Consumer Price Inflation," CESifo Working Paper Series 9961, CESifo.
    10. Brown, Pike & Walsh, Patrick & Booth, Pam, 2020. "Environmental signalling & expectations of future drought: Evidence from panel data," 2020 Conference (64th), February 12-14, 2020, Perth, Western Australia 305239, Australian Agricultural and Resource Economics Society.
    11. Cashin, Paul & Mohaddes, Kamiar & Raissi, Mehdi, 2017. "Fair weather or foul? The macroeconomic effects of El Niño," Journal of International Economics, Elsevier, vol. 106(C), pages 37-54.
    12. Quy Ta & Yothin Jinjarak & Ilan Noy, 2022. "“How Do Shocks Affect International Reserves? A Quasi-Experiment of Earthquakes”," Open Economies Review, Springer, vol. 33(5), pages 945-971, November.
    13. Ciccarelli, Matteo & Marotta, Fulvia, 2021. "Demand or supply? An empirical exploration of the effects of climate change on the macroeconomy," Working Paper Series 2608, European Central Bank.
    14. Matteo Ciccarelli & Fulvia Marotta, 2021. "Demand or Supply? An empirical exploration of the effects of climate change on the macroeconomy," Working Papers 933, Queen Mary University of London, School of Economics and Finance.
    15. Gallic, Ewen & Vermandel, Gauthier, 2020. "Weather shocks," European Economic Review, Elsevier, vol. 124(C).
    16. P. Stahlmann-Brown & P. Walsh, 2022. "Soil moisture and expectations regarding future climate: evidence from panel data," Climatic Change, Springer, vol. 171(1), pages 1-20, March.
    17. Pourzand, Farnaz & Noy, Ilan & Sağlam, Yiğit, 2020. "Droughts and farms’ financial performance: a farm‐level study in New Zealand," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), July.
    18. Levente Timar & Eyal Apatov, 2020. "A Growing Problem: Exploring Livestock Farm Resilience to Droughts in Unit Record Data," Working Papers 20_14, Motu Economic and Public Policy Research.
    19. Yang, Huicai & Wang, Huixiao & Fu, Guobin & Yan, Haiming & Zhao, Panpan & Ma, Meihong, 2017. "A modified soil water deficit index (MSWDI) for agricultural drought monitoring: Case study of Songnen Plain, China," Agricultural Water Management, Elsevier, vol. 194(C), pages 125-138.
    20. Suzi Kerr, 2016. "Agricultural Emissions Mitigation in New Zealand: Answers to Questions from the Parliamentary Commisioner for the Environment," Working Papers 16_16, Motu Economic and Public Policy Research.
    21. Alain N. Kabundi & Mr. Montfort Mlachila & Jiaxiong Yao, 2022. "How Persistent are Climate-Related Price Shocks? Implications for Monetary Policy," IMF Working Papers 2022/207, International Monetary Fund.
    22. David J. Frame & Suzanne M. Rosier & Ilan Noy & Luke J. Harrington & Trevor Carey-Smith & Sarah N. Sparrow & Dáithí A. Stone & Samuel M. Dean, 2020. "Climate change attribution and the economic costs of extreme weather events: a study on damages from extreme rainfall and drought," Climatic Change, Springer, vol. 162(2), pages 781-797, September.
    23. Chaitat Jirophat & Pym Manopimoke & Suparit Suwanik, 2022. "The Macroeconomic Effects of Climate Shocks in Thailand," PIER Discussion Papers 188, Puey Ungphakorn Institute for Economic Research.
    24. James Graham, 2014. "'N Sync: how do countries' economies move together?," Reserve Bank of New Zealand Analytical Notes series AN2014/04, Reserve Bank of New Zealand.

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