On the Macro Impact of Extreme Climate Events in Central America: A Higher Frequency Investigation

On the Macro Impact of Extreme Climate Events in Central America: A Higher Frequency Investigation
Author :
Publisher : International Monetary Fund
Total Pages : 38
Release :
ISBN-10 : 9798400226021
ISBN-13 :
Rating : 4/5 (21 Downloads)

Book Synopsis On the Macro Impact of Extreme Climate Events in Central America: A Higher Frequency Investigation by : Hee Soo Kim

Download or read book On the Macro Impact of Extreme Climate Events in Central America: A Higher Frequency Investigation written by Hee Soo Kim and published by International Monetary Fund. This book was released on 2022-12-02 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: Central America is one of the world’s most vulnerable regions to extreme climate events. The literature estimates the macroeconomic effects of climate events mainly using annual data, which might underestimate the true effects as these extreme events tend to be short-lived and generate government and family support in response. To overcome this limitation, this paper studies Central American countries’ macroeconomic impact of climatic disasters using high-frequency (monthly) data over the period 2000-2019. We identify extreme climate events by defining dummy variables related to storm and flood events reported in the EM-DAT (Emergency Events Database) and estimate country-specific VAR and panel VAR. The results suggest that a climatic disaster drops monthly economic activity in most countries in the region of around 0.5 to 1 percentage points on impact, with persistent effects on the level of GDP. We show that even as extreme climate events were relatively less severe under our sample period, quantitative effects are similar or larger than previously estimated for the region. In addition, remittances (transfers from family living abroad) increase for most countries in response to a extreme climate event, acting as a shock absorber. The results are robust to controlling for the severity of the climate events, for which we construct a monthly climate index measuring severity of weather indicators by following the spirit of the Actuaries Climate Index (ACI).


On the Macro Impact of Extreme Climate Events in Central America: A Higher Frequency Investigation Related Books

On the Macro Impact of Extreme Climate Events in Central America: A Higher Frequency Investigation
Language: en
Pages: 38
Authors: Hee Soo Kim
Categories: Business & Economics
Type: BOOK - Published: 2022-12-02 - Publisher: International Monetary Fund

DOWNLOAD EBOOK

Central America is one of the world’s most vulnerable regions to extreme climate events. The literature estimates the macroeconomic effects of climate events
Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation
Language: en
Pages: 593
Authors: Intergovernmental Panel on Climate Change
Categories: Business & Economics
Type: BOOK - Published: 2012-05-28 - Publisher: Cambridge University Press

DOWNLOAD EBOOK

Extreme weather and climate events, interacting with exposed and vulnerable human and natural systems, can lead to disasters. This Special Report explores the s
Attribution of Extreme Weather Events in the Context of Climate Change
Language: en
Pages: 187
Authors: National Academies of Sciences, Engineering, and Medicine
Categories: Science
Type: BOOK - Published: 2016-07-28 - Publisher: National Academies Press

DOWNLOAD EBOOK

As climate has warmed over recent years, a new pattern of more frequent and more intense weather events has unfolded across the globe. Climate models simulate s
The Ocean and Cryosphere in a Changing Climate
Language: en
Pages: 755
Authors: Intergovernmental Panel on Climate Change (IPCC)
Categories: Science
Type: BOOK - Published: 2022-04-30 - Publisher: Cambridge University Press

DOWNLOAD EBOOK

The Intergovernmental Panel on Climate Change (IPCC) is the leading international body for assessing the science related to climate change. It provides policyma
Shock Waves
Language: en
Pages: 227
Authors: Stephane Hallegatte
Categories: Business & Economics
Type: BOOK - Published: 2015-11-23 - Publisher: World Bank Publications

DOWNLOAD EBOOK

Ending poverty and stabilizing climate change will be two unprecedented global achievements and two major steps toward sustainable development. But the two obje