An Economic Chill

Date Added: Jul 2009
Format: HTML

A rising tide is said to lift all boats. Rising global temperatures, however, may lead to increased disparities between rich and poor countries, according to a study by Kellogg Associate Professor Benjamin F. Jones, who evaluated the impact of climate change on growth. After examining worldwide climate and economic data from 1950 to 2003, Jones and his co-authors concluded that a one-degree Celsius rise in temperature in a given year reduces economic growth by an average of 1.1 percentage points in the world's poor countries but has no measurable effect in rich countries.