Effect of temperature on development and inequality in Latin America
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2024-07-11
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en
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There is a large literature on the relationship between temperature and various aspects of development. However, many papers use relatively older weather data, even though climate change is accelerating. In this paper, I look at the relationship between temperature and human development by analysing the relationship between temperature and HDI and its subcomponents, using weather data from 2000 to 2019, more recent weather data than generally used in literature. I find three main things: (I) There is a significant relationship between temperature and HDI. The relationship I find is (surprisingly) positive and linear. (II) I find little evidence of non-linearity in the relationship between temperature and HDI. This is contrary to some papers, but in line with several others. (III) There is some suggestive evidence that there is a non-linear relationship between temperature and the income index in poorer countries. I refrain from providing policy implications, as I suggest more research is needed for this.
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Faculteit der Managementwetenschappen