@article{KotzWenzStechemesseretal.2021,
  author    = {Kotz, Maximilian and Wenz, Leonie and Stechemesser, Annika and Kalkuhl, Matthias and Levermann, Anders},
  title     = {Day-to-day temperature variability reduces economic growth},
  series = {Nature climate change},
  volume    = {11},
  journal   = {Nature climate change},
  number    = {4},
  publisher = {Nature Publishing Group},
  address   = {London},
  issn      = {1758-678X},
  doi       = {10.1038/s41558-020-00985-5},
  pages     = {319 -- 325},
  year      = {2021},
  abstract  = {Elevated annual average temperature has been found to impact macro-economic growth. However, various fundamental elements of the economy are affected by deviations of daily temperature from seasonal expectations which are not well reflected in annual averages. Here we show that increases in seasonally adjusted day-to-day temperature variability reduce macro-economic growth independent of and in addition to changes in annual average temperature. Combining observed day-to-day temperature variability with subnational economic data for 1,537 regions worldwide over 40 years in fixed-effects panel models, we find that an extra degree of variability results in a five percentage-point reduction in regional growth rates on average. The impact of day-to-day variability is modulated by seasonal temperature difference and income, resulting in highest vulnerability in low-latitude, low-income regions (12 percentage-point reduction). These findings illuminate a new, global-impact channel in the climate-economy relationship that demands a more comprehensive assessment in both climate and integrated assessment models.},
  language  = {en}
}
@article{PiontekKalkuhlKriegleretal.2019,
  author    = {Piontek, Franziska and Kalkuhl, Matthias and Kriegler, Elmar and Schultes, Anselm and Leimbach, Marian and Edenhofer, Ottmar and Bauer, Nico},
  title     = {Economic Growth Effects of Alternative Climate Change Impact Channels in Economic Modeling},
  series = {Environmental \& resource economics : the official journal of the European Association of Environmental and Resource Economists},
  volume    = {73},
  journal   = {Environmental \& resource economics : the official journal of the European Association of Environmental and Resource Economists},
  number    = {4},
  publisher = {Springer},
  address   = {Dordrecht},
  issn      = {0924-6460},
  doi       = {10.1007/s10640-018-00306-7},
  pages     = {1357 -- 1385},
  year      = {2019},
  abstract  = {Despite increasing empirical evidence of strong links between climate and economic growth, there is no established model to describe the dynamics of how different types of climate shocks affect growth patterns. Here we present the first comprehensive, comparative analysis of the long-term dynamics of one-time, temporary climate shocks on production factors, and factor productivity, respectively, in a Ramsey-type growth model. Damages acting directly on production factors allow us to study dynamic effects on factor allocation, savings and economic growth. We find that the persistence of impacts on economic activity is smallest for climate shocks directly impacting output, and successively increases for direct damages on capital, loss of labor and productivity shocks, related to different responses in savings rates and factor-specific growth. Recurring shocks lead to large welfare effects and long-term growth effects, directly linked to the persistence of individual shocks. Endogenous savings and shock anticipation both have adaptive effects but do not eliminate differences between impact channels or significantly lower the dissipation time. Accounting for endogenous growth mechanisms increases the effects. We also find strong effects on income shares, important for distributional implications. This work fosters conceptual understanding of impact dynamics in growth models, opening options for links to empirics.},
  language  = {en}
}