Abstract
This paper examines the impact of extreme precipitation on Chinese industrial output and its total factor productivity (TFP) using data from the annual survey of industrial firms (ASIF) and daily weather data. The findings demonstrate a significant reduction in industrial firm output as a result of precipitation, with extreme daily precipitation decreasing output by approximately 1.22%. We provide an explanation for this precipitation-industrial output relationship from four perspectives: per capita wages, labor productivity, inventory, and depreciation. The effects of extreme precipitation are more pronounced in high-income and high-precipitation regions, as well as among foreign firms and low-technology firms. Our research suggests that extreme daily precipitation poses a serious obstacle to the development of the manufacturing industry. These results are crucial for understanding the economic impact and concealed costs of climate change, highlighting that extreme precipitation should be recognized as one of the primary sources of damage associated with climate change in the future.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
