Temperature and Industrial Output: Micro-level Evidence from China
EfD Authors:
We pair a county-level panel of annual industrial output with a fine-scale daily weather dataset to estimate the responses of industrial output to temperature changes in China. We have three primary findings. First, industrial output is nonlinear in temperature changes. With seasonal average temperatures as temperature variables, industrial output increases by 0.7–1.0% for each 1°C increase in average spring temperature, and falls by 1.3–2.3% for each 1°C increase in average summer temperature.