Impact of climate change on the economic growth of the USA
List of Authors
  • Md Kamrul Islam

Keyword
  • Climate change, Economic Growth, GDP per capita, USA, Econometric analysis, Precipitation

Abstract
  • Climate change is one of the major challenges affecting the economy's growth worldwide. In this study, an analysis was conducted to determine the influence of climate change on the economic growth of the USA using econometric models. Variables such as storm events, energy consumption, health expenditures, temperature, precipitation, CO2 emissions, and fixed assets were analyzed to determine their influence on GDP per capita. This study examines the impact of climate change on the economic growth of the United States. It uses econometric models to comprehend how different climatic and economic factors affect GDP per capita. This research used a multiple linear regression model to investigate the correlation between GDPs per capita and several independent variables, including storm occurrences, energy consumption, health expenditures, temperature, precipitation, CO2 emissions, and fixed assets. The data from 1970 to 2023 were obtained from reputed agencies such as NOAA, EIA, BEA, and EPA. This analysis uncovers significant findings that are highly relevant to the current economic and climate change situation. It was found that increased energy consumption and health expenditures per capita positively correlate with GDP per capita. Conversely, rising occurrences of storm events, average temperatures, precipitation, and CO2 emissions negatively influence GDP per capita. This knowledge is crucial for policymakers and economists, emphasizing the importance of investing in fixed assets to boost economic production and the urgent need for clear climate policies to mitigate the negative impact of climate change on economic growth. While this research provides valuable insights, it is essential to note that the restricted availability and quality of historical climatic and economic data may affect the study's conclusions. This highlights the need for further research in this area to ensure the reliability of future studies.

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