Working Paper: NBER ID: w27247
Authors: Antonio Bento; Noah S. Miller; Mehreen Mookerjee; Edson R. Severnini
Abstract: We develop a unifying approach to estimating climate impacts and adaptation, and apply it to study the impact of climate change on local air pollution. Economic agents are usually constrained when responding to daily weather shocks, but may adjust to long-run climatic changes. By simultaneously exploiting variation in weather and climate, we identify both the short- and long-run impacts on economic outcomes, and measure adaptation directly as the difference between those responses. As a result, we identify adaptation without making extrapolations of weather responses over time or space, and overcome omitted variable bias concerns in prior approaches.
Keywords: Climate Change; Adaptation; Air Pollution; Ozone Concentration
JEL Codes: C51; Q53; Q54
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| climate change (Q54) | ambient ozone concentration (Q53) |
| 1°C increase in maximum temperature (Q54) | maximum ambient ozone concentration (Q53) |
| 1°C change in climate norm (Q54) | maximum ambient ozone concentration (Q53) |
| difference between coefficients of temperature shocks and climate norms (C22) | measure of adaptation (C52) |
| failing to account for adaptation (C59) | overestimation of climate penalty on ozone (Q54) |