全球智库信息集成服务系统(G2TT): Welfare Costs of Long-Run Temperature Shifts

G2TT

来源类型	Working Paper
规范类型	报告
DOI	10.3386/w17574
来源ID	Working Paper 17574
	Welfare Costs of Long-Run Temperature Shifts
	Ravi Bansal; Marcelo Ochoa
发表日期	2011-11-03
出版年	2011
语种	英语
摘要	This article makes a contribution towards understanding the impact of temperature fluctuations on the economy and financial markets. We present a long-run risks model with temperature related natural disasters. The model simultaneously matches observed temperature and consumption growth dynamics, and key features of financial markets data. We use this model to evaluate the role of temperature in determining asset prices, and to compute utility-based welfare costs as well as dollar costs of insuring against temperature fluctuations. We find that the temperature related utility-costs are about 0.78% of consumption, and the total dollar costs of completely insuring against temperature variation are 2.46% of world GDP. If we allow for temperature-triggered natural disasters to impact growth, insuring against temperature variation raise to 5.47% of world GDP. We show that the same features, long-run risks and recursive-preferences, that account for the risk-free rate and the equity premium puzzles also imply that temperature-related economic costs are important. Our model implies that a rise in global temperature lowers equity valuations and raises risk premiums.
主题	Macroeconomics ; Financial Economics ; Environmental and Resource Economics
URL	https://www.nber.org/papers/w17574
来源智库	National Bureau of Economic Research (United States)
引用统计
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/575248
推荐引用方式 GB/T 7714	Ravi Bansal,Marcelo Ochoa. Welfare Costs of Long-Run Temperature Shifts. 2011.

条目包含的文件
文件名称/大小	资源类型	版本类型	开放类型	使用许可
w17574.pdf（224KB）	智库出版物		限制开放	CC BY-NC-SA	浏览