Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/176296
Authors: 
Sudarshan, Anant
Tewari, Meenu
Year of Publication: 
2014
Series/Report no.: 
Working Paper 278
Abstract: 
We provide empirical evidence indicating that changes in surface temperatures may directly impact manufacturing output through their impact on worker productivity. We utilize a multi-year panel of manufacturing plants in India, as well as daily worker productivity measures from selected case-study units to show that (i) manufacturing output decreases at high temperatures by 1-3 percent per degree celsius; (ii) this reduction appears to be driven by declining worker productivity. Our results suggest that climate-economy models may underestimate the costs of climate change by neglecting to account for reduced worker productivity. The causal channel we identify could explain a portion of the strong negative correlation observed between temperature and GDP.
Subjects: 
temperature
worker productivity
industry
climate change
JEL: 
Q54
Q56
Document Type: 
Working Paper

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