Weather and Income: Lessons from the Main European Regions

62 Pages Posted: 5 May 2015

Date Written: May 5, 2015


Some recent papers by Dell et al. (2009) and Dell et al. (2012) (DJO) relating weather and economic outcomes, have delivered meaningful messages with clear implications to the effects of a changing climate. In a nutshell, the authors claim that a 1°C increase in global average temperatures would harm both the level and growth capacities of relatively poor countries, leaving rich countries basically unaffected. In this study, we make use of a detailed weather and economic dataset covering the main regions of the five largest economies in the Euro area in an attempt to refute the previous affirmation. In particular, we find in our sample that global warming affects, although in a modest manner, all regions within well-developed countries in the long-term (level effect). As in DJO, the level effect in poor regions is exacerbated. The latter regions also suffer from a slight negative short-term effect (growth effect). We claim also that the larger short-time response of these regions to a climate shock is partially adapted in the long-run.

Keywords: Economic Growth, Weather, Ricardian Analysis, Developed Economies, Climate Change, Adaptation, NUTS

JEL Classification: O1, O4, Q51, Q54, Q59, R11

Suggested Citation

García-León, David, Weather and Income: Lessons from the Main European Regions (May 5, 2015). FEEM Working Paper No. 039.2015, Available at SSRN:

David García-León (Contact Author)

Universidad de Alicante ( email )

Campus de San Vicente
Carretera San Vicente del Raspeig
San Vicente del Raspeig, Alicante 03690

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