Climate Change and Industrial Performance: Evidence from Remote Sensing Data
45 Pages Posted: 21 Jul 2020 Last revised: 23 Feb 2021
Date Written: January 1, 2020
This paper studies the medium-term impact of climate changes on industrial performance. We utilize the high-resolution satellite readings of soil moisture from the GLEAM database to measure climate changes globally over three decades. We examine the implications of medium-term soil moisture droughts on global food industries using the regression framework of the new climate-economy literature, and find that food industries are severely affected by medium-term soil moisture droughts. Moreover, we show this negative impact is universal across hot and cold climate regions, does not depend on a country’s income level, and is robust to time-varying heterogeneous influences from countries.
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