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Hotter Planet, Hotter Factories: Uneven Impacts of Climate Change on Productivity

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dc.contributor.authorKassa, Woubet
dc.contributor.authorWoldemichael, Andinet
dc.date.accessioned2024-05-06T18:05:14Z
dc.date.available2024-05-06T18:05:14Z
dc.date.issued2024-05-06
dc.description.abstractThis study documents the impacts of climate change on firm-level productivity by matching a globally comparable and standardized survey of nonagricultural firms covering 154 countries with climate data. The findings show that the overall effects of rising temperatures on productivity are negative but nonlinear and uneven across climate zones. Firms in hotter zones experience steeper losses with increases in temperature. A 1 degree Celsius increase from the typical wet-bulb temperature levels in the hottest climate zone (25.7 degrees Celsius and above) results in a productivity decline of about 20.8 percent compared to firms in the coldest climate zone. The effects vary not only based on the temperature zones within which firms are located, but also on other factors such as firm size, industry classification, income group, and region. Large firms, firms in manufacturing, and those in low-income countries and hotter climate zones tend to experience the biggest productivity losses. The uneven impacts, with firms in already hotter regions and low-income countries experiencing steeper losses in productivity, suggest that climate change is reinforcing global income inequality. If the trends in global warming are not reversed over the coming decades, there is a heightened risk of widening inequality across countries. The implications are especially dire for the poorest countries in the hottest regions.en
dc.identifierhttp://documents.worldbank.org/curated/en/099201305062424411/IDU1bc4ad5bd1491a1475d18b0e1339d04cbc643
dc.identifier.doi10.1596/1813-9450-10762
dc.identifier.urihttps://hdl.handle.net/10986/41507
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; 10762
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectCLIMATE CHANGE
dc.subjectFIRMS
dc.subjectLABOR PRODUCTIVITY
dc.subjectTEMPERATURE CHANGES
dc.titleHotter Planet, Hotter Factoriesen
dc.title.subtitleUneven Impacts of Climate Change on Productivityen
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titleHotter Planet, Hotter Factories: Uneven Impacts of Climate Change on Productivity
okr.date.disclosure2024-05-06
okr.date.doiregistration2025-04-08T16:24:27.967371Z
okr.date.doiregistration2025-04-09T02:58:10.822899Z
okr.date.lastmodified2024-05-06T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099201305062424411/IDU1bc4ad5bd1491a1475d18b0e1339d04cbc643
okr.guid099201305062424411
okr.identifier.docmidIDU-bc4ad5bd-491a-475d-8b0e-339d04cbc643
okr.identifier.doi10.1596/1813-9450-10762
okr.identifier.doihttps://doi.org/10.1596/1813-9450-10762
okr.identifier.externaldocumentum34313904
okr.identifier.internaldocumentum34313904
okr.identifier.reportWPS10762
okr.import.id4078
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099201305062424411/pdf/IDU1bc4ad5bd1491a1475d18b0e1339d04cbc643.pdfen
okr.region.geographicalWorld
okr.topicIndustry::Industrial and Consumer Services and Products
okr.topicSocial Protections and Labor::Skills Development and Labor Force Training
okr.topicSocial Protections and Labor::Labor Standards
okr.topicFinance and Financial Sector Development::Finance and Development
okr.topicIndustry::General Manufacturing
okr.topicEnvironment::Adaptation to Climate Change
okr.topicEnvironment::Climate Change and Environment
okr.unitOffice of the Chief Economist (AFECE)
relation.isAuthorOfPublication87a89be1-564e-57a6-8827-b603d624fd3d
relation.isAuthorOfPublication.latestForDiscovery87a89be1-564e-57a6-8827-b603d624fd3d
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
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