Investigating the effect of climate change on the growth of the gross domestic product of Iran's provinces in different periods of time

Document Type : Research Article

Authors

1 Department of Economics, Faculty of Administrative and Economic Sciences, Ferdowsi University of Mashhad, Mashhad, Iran.

2 Associate Professor, Department of Economics, Faculty of Administrative and Economic Sciences, Ferdowsi University of Mashhad, Mashhad, Iran.

3 Associate Professor of Economics, Ferdowsi University of Mashhad, Mashhad, Iran.

10.22084/aes.2024.29480.3701

Abstract

The extent of the effects and consequences of climate change on various dimensions of human life today has made this phenomenon more than an environmental issue and highlighted its economic aspects with regard to its effects on economic development, poverty, inequality and prosperity. Economic analysis of climate change, especially in different time periods, requires estimates at national and local levels. In view of conducting some limited and mostly partial studies on the economic impact of changing weather conditions in Iran, in this article using the economic production data and new calculation of weather variables for the provinces of the country between 2000 to 2020, it has been possible to estimate the impact of climate change on different time scales by using annual panel model and long difference model. The results show that there is a negative effect of changes in temperature and precipitation simultaneously and with a delay of one year on the production of Iranian provinces, although the value of these coefficients is very low. In addition, these changes affect short-term production and long-term growth. However, it can be claimed that there is no long-term effect between precipitation levels and changes in production, unlike temperature levels. Also, a significant negative effect of intermittent changes in temperature on production can be seen, and a positive effect can be extracted regarding intermittent changes in precipitation. In the regression of the long difference, there was no evidence that the temperature level (or the amount of precipitation) has an effect on the production of the provinces in long periods, although the change in precipitation has a greater influence in longer periods, and unlike temperature, its effect It is not rejected in shorter periods of time either.

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