Climate Shocks and Exports
Author(s)Olken, Benjamin A.; Jones, Benjamin F.
MetadataShow full item record
This paper uses international trade data to examine the effects of climate shocks on economic activity. At the aggregate level, Melissa Dell, Benjamin F. Jones, and Benjamin A. Olken (2008) (hereafter, DJO) have demonstrated that higher temperatures in a given year reduce the growth rate of GDP per capita, but only in poor countries. The analysis of trade data in this paper builds on that finding, with three principal motivations. First, international trade links the fortunes of countries, providing potentially important conduits for geographically limited climatic impacts to have global economic effects. Second, international trade data is the best available source for identifying economic activity worldwide separately by narrowly defined sectors. Examining international trade data, one can thus say more precisely what sectors are affected by climatic changes. Finally, the trade data, collected by the importing country, provides a check on the potentially low-quality national accounts data provided by the home country.
DepartmentMassachusetts Institute of Technology. Department of Economics
American Economic Review
American Economic Association.
Jones, Benjamin F, and Benjamin A Olken. “Climate Shocks and Exports.” American Economic Review 100.2 (2010): 454-459. © 2011 AEA
Final published version