Will We Adapt? Temperature Shocks, Labor and Adaptation to Climate Change

Citation:

Jisung Park, Patrick Behrer. “Will We Adapt? Temperature Shocks, Labor and Adaptation to Climate Change.” Harvard Project on Climate Agreements Working Papers, Submitted.

Abstract:

We explore the labor-related production impacts of temperature stress both for its own interest and to understand the role of adaptation in responding to climate change. Focusing on non-agricultural sectors in the United States, we find that hot temperatures exert a causal, negative impact on county-level payroll  -- reducing payroll by several percentage points in a 2C hotter year  -- with larger impacts in highly exposed industries such as construction and manufacturing. We assess differences in implied adaptation investments across regions with varying incentives for long-run adaptation, and find evidence consistent with hotter climates being better adapted to hot weather.

Last updated on 12/18/2017