Measuring Heat Waves and Their Effects on Economic Output

61 Pages Posted: 23 Jul 2019

See all articles by Kenn Chua

Kenn Chua

University of Minnesota - College of Agricultural, Food and Environmental Sciences - Department of Applied Economics

Jay S. Coggins

University of Minnesota - College of Agricultural, Food and Environmental Sciences - Department of Applied Economics

Steve Miller

University of Minnesota - Twin Cities - Department of Applied Economics

Hamid Mohtadi

University of Wisconsin - Milwaukee

Date Written: July 22, 2019

Abstract

We provide novel evidence that accumulated heat exposure affects economic activity in ways that are distinct from shifts in the temperature distribution. We first derive new measures of accumulated heat exposure, which we validate by successfully reproducing well-known heat waves with a global dataset of nearly 1 billion daily temperatures spanning 1979-2016. Using these measures, we find summer heat waves imply lower per-capita output, especially in agriculture. Further, cumulative exposure matters: hot days preceded by several others are significantly more damaging. Estimated agricultural losses from the 2003 France heat wave were 13 times larger than standard approaches suggest.

Keywords: heat waves, economic growth

JEL Classification: O13, Q50, Q54

Suggested Citation

Chua, Kenn and Coggins, Jay S. and Miller, Steve and Mohtadi, Hamid, Measuring Heat Waves and Their Effects on Economic Output (July 22, 2019). Available at SSRN: https://ssrn.com/abstract=3424125 or http://dx.doi.org/10.2139/ssrn.3424125

Kenn Chua

University of Minnesota - College of Agricultural, Food and Environmental Sciences - Department of Applied Economics ( email )

1994 Buford Avenue
St. Paul, MN 55108
United States

Jay S. Coggins

University of Minnesota - College of Agricultural, Food and Environmental Sciences - Department of Applied Economics ( email )

1994 Buford Avenue
St. Paul, MN 55108
United States
612-625-6232 (Phone)
612-625-2729 (Fax)

Steve Miller (Contact Author)

University of Minnesota - Twin Cities - Department of Applied Economics ( email )

MN
United States

Hamid Mohtadi

University of Wisconsin - Milwaukee ( email )

Department of Economics
Milwaukee, WI 53211
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
26
Abstract Views
209
PlumX Metrics