Carbon-sensitive productivity, climate and institutions

Surender Kumar, Shunsuke Managi
2015 Environment and Development Economics  
AbstractClimate and institutions might be crucial in lowering the vagaries of climate change impacts in terms of productivity. This study measures the relationships of productivity measures adjusted for the regulation of carbon emission and institutions together with climate change throughout the world. This paper finds that there is higher potential for reduction of CO2emissions in developing countries at lower cost. However, the cost to reduce emissions lowers their growth potential in terms
more » ... potential in terms of lost productivity growth. Better institutions help to lower the negative impacts of climate change by improving the process of technological adoption in developing countries. Climate change reduces the productivity growth in developing countries by lowering the process of technological adoption, and better institutions result in higher productivity.
doi:10.1017/s1355770x15000054 fatcat:x46brpin7zbknnzuzrr4z7p3pm