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Authors:SIMON TOUBOUL, QING MIAO, DAVID POPP Abstract: Climate Change Economics, Volume 16, Issue 02, May 2025. We analyze innovation of climate adaptation technologies in response to weather extremes. Using patent data and original climate indicators at the country level, we estimate the effects of past extreme droughts, precipitation and heatwaves on patenting for adaptation technologies. Innovation response varies by hazard and technology and is strongest for droughts and heatwaves. The impact of extreme events on innovation also varies across countries depending on their long-term hazard exposure and risk. While higher-risk countries on average patent more adaptation technologies than low-risk countries, innovators are more responsive to extreme weather in countries with lower baseline risk. Our findings suggest that extreme weather is more salient to people living in regions less prone to that hazard and, therefore, the shock is more likely to provide new information and induce a larger behavioral response there. Citation: Climate Change Economics PubDate: 2025-06-27T07:00:00Z DOI: 10.1142/S201000782550006X Issue No:Vol. 16, No. 02 (2025)
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Authors:YU-KAI HUANG, BRUCE A. MCCARL, CHENGCHENG J. FEI, WITSANU ATTAVANICH, THEEPAKORN JITHITIKULCHAI, DOO BONG HAN Abstract: Climate Change Economics, Volume 16, Issue 02, May 2025. Rice feeds billions of populations, and its yields are sensitive to climate change, carbon dioxide (CO[math], and technological progress. This study estimates a model of these effects using Asian rice yield data merged with free air carbon dioxide enrichment (FACE) experimental data. A three-stage generalized least squares model is developed to quantify their effects on mean rice yields and their variance. The results show that CO2 concentration has significantly contributed to increased rice yields, accounting for 16–26% of observed yield growth over 1990–2015. This indicates that if significant CO2 mitigation occurs, the CO2 fertilization effect will diminish, inducing a yield reduction. This finding suggests that increased agricultural research and development investments are needed to overcome not only adverse climate change effects but also to counteract CO2 mitigation effects on rice yields. Citation: Climate Change Economics PubDate: 2025-06-27T07:00:00Z DOI: 10.1142/S2010007825500071 Issue No:Vol. 16, No. 02 (2025)
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Authors:BO YANG, XIAO-CHEN YUAN, ZHIMING YANG, CHEN YI, SIYU LIU, SI-YI WEI, XIN-YANG JIANG, SONG PENG, HUA LIAO, YI-MING WEI Abstract: Climate Change Economics, Ahead of Print. Climate change poses dramatic labor health risks, but existing evidence mainly focuses on the assessments of single climatic factors. Through the physical functioning index, this study identified the effects of both temperature and precipitation on labor health and assesses the magnitude of potential working hour loss in the warming future. Our results indicate that both mean state and event level of compound climate lead to physical functioning loss. Light rain will alleviate the health damage during the occurrence of extreme heat, while precipitation of more than 10[math]mm will exacerbate the impact on humans. Adaptation from time extension, insurance coverage, and income growth will effectively mitigate health loss. In the absence of increasing adaptive capacity, China is expected to suffer an effective working hour loss of 1.78–3.10[math]h per capita per day by 2090. Economically developed and labor-intensive regions need to be highly concerned about economic shocks from compound climate. Citation: Climate Change Economics PubDate: 2025-06-30T07:00:00Z DOI: 10.1142/S2010007825500083
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Authors:TANG JINGYE, MA ZHENGWEI, WANG HEDA, ZHU YUJIAO Abstract: Climate Change Economics, Ahead of Print. This study explores the carbon reduction and carbon leakage effect and their heterogeneity in different China’s carbon trading pilots. Multi-regional input–output method, and double and triple difference methods are used for calculating carbon transfer and empirical analysis of carbon leakage. The research results suggest unilateral environmental regulations can lead to positive carbon leakage to nonpilot areas through industrial transfer channels, which is evident in various accounting ranges of carbon transfer. The contribution of different pilot provinces and cities to carbon reduction and carbon leakage is heterogeneous. The above research provides reference and inspiration for China to further improve the construction of the national carbon market. Citation: Climate Change Economics PubDate: 2025-03-29T07:00:00Z DOI: 10.1142/S2010007825500046
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Authors:BENJAMIN LERCH, THOMAS BRÄNDLE, ROMAN ELBEL, MARTIN BAUR, CARSTEN COLOMBIER Abstract: Climate Change Economics, Ahead of Print. Climate change and climate mitigation policies pose significant challenges to both the economy and public finances. This paper analyzes the long-term fiscal implications of climate policies aimed at achieving net-zero emissions in Switzerland by 2050. Using a novel budget-impact projection framework, we consider four climate policy scenarios with different mixes of carbon pricing, regulation and subsidies. Our projection analysis shows that the path to net-zero emissions will put pressure on public finances in the coming decades. This result primarily follows from the projected negative impact of climate mitigation policies on economic growth, which in turn dampens the growth of tax revenues and social security contributions. We highlight the importance of compensating for revenue losses due to the erosion of the fuel tax base as a result of the electrification of the transport sector. Finally, we show that the use of subsidies in climate and energy policies exacerbates fiscal pressures on the public expenditure side. Our projections highlight the need for policy action and the importance of forward-looking climate and fiscal policies to ensure sustainable public finances during the energy transition. Citation: Climate Change Economics PubDate: 2025-03-29T07:00:00Z DOI: 10.1142/S2010007825500058
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Authors:MINGYANG ZHANG, WENJIE WANG, RUI HU, ZHIQIANG CHENG, JIA LI, XIAOXIAO ZHANG Abstract: Climate Change Economics, Ahead of Print. As heat waves become more frequent and intense around the world, climate change’s effect on human health has aroused widespread concern in society. Using China Family Panel Studies in 2014–2018, this paper empirically examines the health depreciation and medical cost effects of temperature variation. The outcomes demonstrated that the health depreciation effect of temperature variation manifested as impairment of fitness, mental health, and social adaptability. The health depreciation effect of cumulative high temperature is greater, resulting in higher private medical costs. There is a significant nonlinear relationship between temperature bins, spring/summer temperature variability, and medical costs. In addition, there is heterogeneity in the impact of temperature variation on medical costs at the levels of risk, exposure, and vulnerability. This paper enriches research related to the impact of temperature variation on population health depreciation and individual medical costs and provides a scientific basis for a focused, subpopulation, and subregional response to the trend of frequent extreme heat and for promoting public health. Citation: Climate Change Economics PubDate: 2025-02-24T08:00:00Z DOI: 10.1142/S2010007825500010
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Authors:KAI-HUA WANG, CUI-PING WEN, RAN TAO, JIANZENG LI, XIAOTIAN DONG Abstract: Climate Change Economics, Ahead of Print. Changes in climate policy are posing enormous challenges to carbon markets. However, the intricate link and time-frequency features between climate policy uncertainty (CPU) and carbon emission price (CEP) have not been extensively explored in the current literature. This paper aims to reveal the dynamic relationship between the two under different time frequencies and quantiles by using a wavelet-based quantile-on-quantile regression (QQR) method. Nine sets of variable pairs with various temporal frequencies are constructed, such as short-term CPU and long-term CEP. The results demonstrate that their coefficients would change from positive to negative or irrelevant, or conversely, under different quantiles and frequencies. China has been a global focus and an interesting case since its relentless efforts towards addressing climate change and constructing a carbon market, which makes one of the contributions of this paper. Additionally, time frequencies combined with different quantiles are employed to explore the connection between CPU and CEP, revealing nonlinear and asymmetric features between variables, and enriching the theoretical influencing mechanisms. Therefore, the government should avoid drastic policy changes, and make full use of policy guidance effect. Besides, top-design and market-oriented reforms for the carbon market are needed. Citation: Climate Change Economics PubDate: 2024-08-20T07:00:00Z DOI: 10.1142/S2010007824400098
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Authors:YAMIN LI, LINCHUANG ZHU, KEH KWEK, WENBIN WANG Abstract: Climate Change Economics, Ahead of Print. China’s national climate goals to “peak” its carbon emissions before 2030 and to achieve “carbon neutrality” before 2060 are considered to exert a considerable impact on the country’s production of hydropower, one of the major clean energy sources. Although the existing literature provides a large number of studies on the impacts of China’s “dual carbon” climate goals, only very few studies discuss their impact on the hydropower industry. This paper selects Chinese hydropower companies listed on the country’s stock market to examine. To overcome the traditional problem of the Chow test, the Quandt–Andrews test is used to identify the structural changes in the stock market performance data of those selected companies. The analysis provides essential evidence that shows the considerable impact of China’s announcement of “dual carbon” climate goals on the country’s hydropower industry. Citation: Climate Change Economics PubDate: 2024-07-31T07:00:00Z DOI: 10.1142/S2010007824400104
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Authors:CHUANGYE YAN, MINGJUN HE, FANG LI, LILI ZHU Abstract: Climate Change Economics, Ahead of Print. After the Chinese government’s announcement to achieve the goal of “carbon peaking and carbon neutrality”, the solar photovoltaic power generation industry in the country has experienced rapid development. This paper examines the impact of China’s “dual-carbon” goal on the country’s photovoltaic industry. Photovoltaic companies listed on the stock market are selected and the stock price data of these selected companies from June 1, 2020 to January 28, 2022 are tested for potential structural changes. The paper adopts the Quandt–Andrews test and the results show that the four selected companies have indeed undergone structural changes within one year after the announcement of the dual-carbon goal, and that the demand for photovoltaic power generation equipment has increased significantly. Finally, some suggestions are put forward for enhancing the photovoltaic industry after the COVID-19 pandemic. Citation: Climate Change Economics PubDate: 2024-05-28T07:00:00Z DOI: 10.1142/S2010007824400062
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Authors:JIAOJIAO FAN, XIAOYA GAO, LIN SUN, MENG QIN Abstract: Climate Change Economics, Ahead of Print. The rise of the digital economy has had widespread and profound impacts on the economy and society. Extensive literature exists on digital economy and carbon emissions. However, there is a lack of literature focusing on the impact of the digital economy on the relationship between economic development and carbon emissions. This paper examines whether the digital economy has changed the relationship between economic growth and carbon emissions using panel and spatial econometric modeling. Using a panel dataset of 278 prefecture-level cities in China for the period from 2011 to 2019, the results show that there is a significant inverted U-shaped relationship between economic growth and carbon emissions, which is consistent with the Environmental Kuznets Curve (EKC) model. Moreover, the digital economy brings the turning point forward. In terms of spatial decomposition effects, both direct and indirect effects of economic growth on carbon emissions are significant, suggesting that economic growth has a positive impact on carbon emissions both in local cities and in neighboring areas. Overall, these findings provide valuable policy insights for promoting the synergistic development of the digital economy and accelerating the transition to a low-carbon economy. Citation: Climate Change Economics PubDate: 2024-03-09T08:00:00Z DOI: 10.1142/S2010007823400092
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Authors:TAHIR FAZAL CHOUDHARY, MEENAKSHI GUPTA Abstract: Climate Change Economics, Ahead of Print. This study attempts to analyze the impact of climate change on the productivity of agricultural crops (wheat and maize), in the western Himalayan region of India for the period 1998–2019. The study implies second-generation panel estimation techniques. The Panel Autoregressive Distributed Lags (ARDL) method is used to analyze the long-and short-run effect of climatic variables i.e., average temperature, temperature range, and average precipitation on the yield of wheat and maize. The finding of the Panel ARDL shows that the average temperature of kharif season negatively affects the maize yield both in long run and short run, whereas the average temperature of rabi season has a negatively significant effect on wheat yield in long run and positively significant effect on wheat yield in short run. The average precipitation of rabi season has a positively significant effect on wheat yield both in long run and short run. The study recommends the development of advanced irrigation system, and the implementation of the insurance scheme by the Government and to adopt climate-smart farming techniques. Citation: Climate Change Economics PubDate: 2023-06-10T07:00:00Z DOI: 10.1142/S2010007823500197
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