Climate Change Impacts on GDP Growth in 27 Provinces in Iran (A Panel Data Approach)

Document Type : Research Paper

Authors

1 Professor, Institute for Humanities and Cultural Studies, Tehran, Iran

2 Associate Professor, Faculty of Economics, Allameh Tabataba’i University, Tehran, Iran

3 MA in Economics, Institute for Humanities and Cultural Studies, Tehran, Iran

Abstract

Climate change is the most important phenomenon that directly affects the environment worldwide. The effect of this global phenomenon varies across countries. Some of the consequences of climate change worth mentioning are disappearing of glaciers, the sea level rise and the declining crop yields in Iran being located in an arid and semi-arid area in the Middle East region as well as facing the water crisis hence will not be immune to climate change and its consequences. In this paper, we investigate the effect of climate variables such as temperature and precipitation on GDP growth in 27 provinces in Iran. The labor force, investment and energy consumption are the control variables. We have estimated the panel data model for the years 2000 to 2015. The results indicate a negative effect of temperature on GDP growth with or without the oil production. We have also demonstrated that the rising rainfall contributes to GDP growth.

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