Abstract
Global climate change is increasingly influencing the economic system. With the frequent occurrence of extreme weather events, the influences of climate change on the economic system are no longer limited to the agricultural sector, but extend to the industrial system. However, there is little research on the influences of climate change on industrial economic systems. Among the different sectors of the industrial economic system, the mining industry is more sensitive to the influences of climate change. Here, taking the mining industry as an example, we analyzed the influences of extreme precipitation on the mining industry using the trans-logarithm production function. In addition, the marginal output elasticity analysis method was employed to analyze the main factors influencing the mining industry. It was found that the mining investment in fixed assets, labor input, and technical progress could promote the development of the mining economy, while the extreme precipitation suppressed the growth of the mining industry. The increase in fixed asset investment and the technical progress could enhance the resistance of the mining industry to extreme precipitation, while there was no indication that labor input can reduce the influences of extreme precipitation.
Highlights
Since the concept of climate warming was proposed in 1979, the negative impacts of climate change on sustainable development of the economy have received considerable attention
We employed the trans-logarithm production function to analyze the influences of extreme precipitation on the development of China’s mining industry by using the ridge regression model
Extreme precipitation could result in the reduction of output of the mining industry to some extent; with increasing precipitation intensity, the negative effects of extreme precipitation on the mining economy would be aggravated
Summary
Since the concept of climate warming was proposed in 1979, the negative impacts of climate change on sustainable development of the economy have received considerable attention. The Intergovernmental Panel on Climate Change (IPCC) pointed out that climate change would affect the development of the social economy, reduce the productivity level, and slow down the economic growth, leading to the fluctuation of economic departments [1]. The influences of climate change on the economic system are mainly reflected in two aspects: Namely the influences of the mean value fluctuation of climate factors and the impacts of extreme weather events. The Economic and Social Commission for Asia and the Pacific (ESCAP) has analyzed the panel data, including the output values of multiple industries and the climate factors in several Asian countries from 1972 to 2009, and found that the manufacturing industry, the service industry, and especially the agricultural industry, were influenced by air temperature and precipitation [4]. As a result of the industrial revolution and the development of science and technology, the proportion of the agricultural output value in the gross domestic product (GDP) decreases, and the influences of agriculture on the economic development under the impacts of the external environment such as disasters, are weakened [5]
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