Weather Shocks and Output in Low-Income Countries : The Role of Policies and Adaptation /

We explore the extent to which macroeconomic policies, structural policies, and institutions can mitigate the negative relationship between temperature shocks and output in countries with warm climates. Empirical evidence and simulations of a dynamic general equilibrium model reveal that good polici...

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Bibliographic Details
Main Author: Acevedo Mejia, Sebastian
Other Authors: Baccianti, Claudio, Mrkaic, Mico, Novta, Natalija
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2019.
Series:IMF Working Papers; Working Paper ; No. 2019/178
Online Access:Full text available on IMF
Description
Summary:We explore the extent to which macroeconomic policies, structural policies, and institutions can mitigate the negative relationship between temperature shocks and output in countries with warm climates. Empirical evidence and simulations of a dynamic general equilibrium model reveal that good policies can help countries cope with negative weather shocks to some extent. However, none of the adaptive policies we consider can fully eliminate the large aggregate output losses that countries with hot climates experience due to rising temperatures. Only curbing greenhouse gas emissions-which would mitigate further global warming-could limit the adverse macroeconomic consequences of weather shocks in a long-lasting way.
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Physical Description:1 online resource (34 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Access:Electronic access restricted to authorized BRAC University faculty, staff and students