Climate change poses wide-reaching challenges for regional economy. We study economic consequences of climate change impacts for Atlantic Canada. Designed economic and statistical models describe relationship between economic performance measure, which is regional value added, and two sets of control variables: economic and climate. Statistical model represents linear multiple regression, set in terms of panel data for five regional transportation with autoregressive term for dependent

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... Obtained results showed the negative effect of rising temperature on regional economic performance: if average annual temperature increases by one degree Celsius, it decreases regional value added by 1.74%. Along with an increase in temperature, the rise of the sea level by 1 meter would reduce regional value added by more than 11% meaning that coastal sub-region in Atlantic Canada is highly vulnerable to weather variation and change in climate patterns. iii ACKNOWLEDGEMENTS I want to thank my supervisor Dr. Y. Yevdokimov. I would not become a student of University of New Brunswick, and would not work on my thesis topic without his help and every day support. I do appreciate all the time he devoted to me and his useful advices on future career approach.