STUDY OF THE EFFECTS OF CLIMATE CHANGE ON THE ECONOMY IN SELECTED COUNTRIES
Abstract - Today, climate plays an important role in major socio-economic issues. Severe weather changes and temperature fluctuations have had major impacts on economic activities in various countries around the world, human welfare, health, the performance of ecosystems and biological diversity. Given the importance of the climate change issue, this study examines the effects of changes in climate variables on the economy, agriculture, service and industry sectors in 19 countries. Autoregressive distributed lag (ARDL) approach has been used in this study to investigate the cointegration and long-term relationship between variables.The results of this study show that of the countries examined in this study, Brazil's results best show how climate changes affect a country' seconomy. Therefore, in this study, the results related to Brazil are emphasized. The results show that averagely a change in one unit of precipitation has resulted in a change of $ 0.2 billion in Brazil's gross domestic product each year. Also, averagely each year, changes in rainfall has caused a damage of $ 24.84 billion to the economy of this country. On the other hand, on average, the marginal effect of temperature during the study period is equal to -98.569. In other words, averagely each year, a change of one unit of temperature affected Brazil's gross domestic product negatively by $ 98.569 billion. Also, on average each year, temperature changes has caused a damage of $ 93.40 billion to Brazil's economy during the study period. In total, during the 27-year study period, the total effect of rainfall changes caused $ 89.645 billion damages to the economy of this country; On the other hand, the total effect of temperature changes also caused a damage of $ 26.1064 billion to Brazil's economy. In general, the results of this study have shown that climate changes cause damages to various sectors in countries around the world and the issue of climate change is a global issue. Therefore, reducing the harmful effects of climate change will require the cooperation and joint action of all the countries of the world.
Keywords - Climate Change, Economy, ARDL, Agriculture Sector, Industry Sector, Service Sector, Damage.