Cited by 2,300Climate Change Policy and EconomicsClimate change impacts on agricultureClimate Change and Health Impacts

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What Do We Learn from the Weather? The New Climate-Economy Literature

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Dell, Melissa, Jones, Benjamin F., Olken, Benjamin A.·2014·Journal of Economic Literature

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Abstract

A rapidly growing body of research applies panel methods to examine how temperature, precipitation, and windstorms influence economic outcomes. These studies focus on changes in weather realizations over time within a given spatial area and demonstrate impacts on agricultural output, industrial output, labor productivity, energy demand, health, conflict, and economic growth, among other outcomes. By harnessing exogenous variation over time within a given spatial unit, these studies help credibly identify (i) the breadth of channels linking weather and the economy, (ii) heterogeneous treatment effects across different types of locations, and (iii) nonlinear effects of weather variables. This paper reviews the new literature with two purposes. First, we summarize recent work, providing a guide to its methodologies, datasets, and findings. Second, we consider applications of the new literature, including insights for the “damage function” within models that seek to assess the potential economic effects of future climate change. (JEL C51, D72, O13, Q51, Q54)

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Authors: Dell, M., Jones, B. F., & Olken, B. A.
Affiliations: Harvard University (US)
Northwestern University (US)
Massachusetts Institute of Technology (US)
ORCID: Jones, Benjamin F.
Olken, Benjamin A.
Venue: Journal of Economic Literature
Publisher: American Economic Association
Published: 2014-09-01
Volume: 52
Issue: 3
Pages: 740-798
ISSN: 0022-0515 (ISSN-L)
DOI: 10.1257/jel.52.3.740
OpenAlex: W2104834906
Cited by: 2,300
References: 205
Citations by year: 2026: 265 · 2025: 281 · 2024: 285 · 2023: 251 · 2022: 220 · 2021: 217 · 2020: 188 · 2019: 137 · 2018: 129 · 2017: 127 · 2016: 91 · 2015: 76 · 2014: 23
FWCI: 262.01
Type: journal article
Language: en
Open access: bronze
doi.org
Locations: Journal of Economic Literature (publishedVersion)
RePEc: Research Papers in Economics (submittedVersion)
Topics: Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Climate Change Policy and Economics
Life Sciences › Agricultural and Biological Sciences › Agronomy and Crop Science › Climate change impacts on agriculture
Physical Sciences › Environmental Science › Health, Toxicology and Mutagenesis › Climate Change and Health Impacts
Keywords: temperature effects, precipitation, windstorms, agricultural production, industrial production, labor productivity, energy demand, weather and health, conflict, economic growth, treatment effect heterogeneity, panel data methods

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