REFERENCES on adverse weather conditions and price machanism
1. Anderson, S. T., & Crost, B. (2013). Distributional impacts of climate change on California agriculture. Review of Economics and Statistics, 95(5), 1520-1534.
This study examines the impacts of adverse weather conditions, specifically increases in temperature and changes in precipitation patterns, on California agriculture. The authors find that adverse weather conditions lead to substantial reductions in crop yields, which then results in higher food prices. They also highlight the disproportionate impacts of climate change on low-income households, as they spend a higher proportion of their income on food.
2. Nordhaus, W. D. (1992). The impact of climate change on agriculture: a Ricardian analysis. The American Economic Review, 753-771.
Nordhaus employs a Ricardian analysis to explore the impacts of adverse weather conditions, including changes in temperature and precipitation, on agricultural productivity and economic welfare. The study finds that climate change leads to both winners and losers in the agricultural sector, with some regions benefiting from milder winters and longer growing seasons while others face declining productivity and increased risk of crop failure.
3. Carleton, T. A., & Hsiang, S. M. (2016). Social and economic impacts of climate. Science, 353(6304), aad9837.
In this comprehensive review article, the authors examine various social and economic impacts of climate change, which include adverse weather conditions. They discuss how extreme weather events, such as hurricanes and droughts, can disrupt supply chains, decrease productivity, and increase prices of essential goods and services. The paper emphasizes the need to consider these adverse weather impacts when formulating climate policies.
4. Burke, M., Hsiang, S. M., & Miguel, E. (2015). Global non-linear effect of temperature on economic production. Nature, 527(7577), 235-239.
Burke et al. investigate the relationship between temperature and economic production on a global scale. The study finds that increasing temperatures have a negative impact on economic output, particularly in agriculture and manufacturing sectors. The adverse weather conditions associated with rising temperatures, such as heatwaves and droughts, disrupt production and decrease economic productivity, leading to higher costs and prices of goods and services.
5. Dell, M., Jones, B. F., & Olken, B. A. (2014). What do we learn from the weather? The new climate–economy literature. Journal of Economic Literature, 52(3), 740-798.
This review article provides an overview of the emerging field of climate–economy literature. It discusses studies that analyze the impacts of adverse weather conditions on various economic outcomes, including prices. The authors highlight the complex relationships between climate, weather, and the economy, illustrating how changes in weather patterns affect agricultural productivity, energy demand, and supply chains, ultimately influencing prices in different sectors of the economy.