1 option
Industrial Productivity in a Hotter World: The Aggregate Implications of Heterogeneous Firm Investment in Air Conditioning / Joshua Graff Zivin, Matthew E. Kahn.
- Format:
- Book
- Author/Creator:
- Graff Zivin, Joshua.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w22962.
- NBER working paper series no. w22962
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Other Title:
- Industrial Productivity in a Hotter World
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2016.
- Summary:
- How will a nation's aggregate urban productivity be affected by climate change? The joint distribution of climate conditions and economic activity across a nation's cities will together determine industrial average exposure to climate risk. Air conditioning (AC) can greatly reduce this heat exposure. We develop a simple model of air conditioning adoption by heterogeneous firms within an industry. Our analysis suggests that high productivity firms are more likely to adopt AC since they suffer larger productivity losses when it is hot. Given that the most productive firms produce a disproportionate share of industry-level output, we present aggregation results highlighting how the industry's output is insulated from the heat. Our empirical analysis of the impacts of heat on total factor productivity in U.S manufacturing yields findings broadly consistent with our model's predictions.
- Notes:
- Print version record
- December 2016.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.