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A Study On The Effect Of Temperature Over Income

Posted on:2017-09-04Degree:MasterType:Thesis
Country:ChinaCandidate:Q QuFull Text:PDF
GTID:2310330503490243Subject:Western economics
Abstract/Summary:PDF Full Text Request
The researches on economic development of our country have generally ignored the influence of meteorological factors. As early as in 1750, some scholars put forward the view that hotter countries are poorer. After that, the issue has been widely concerned, but there is no relevant research in China. This dissertation fills the defects and studies the relationship between temperature and income in China. Temperature affects economic growth and income through various ways. For example, high temperature accelerates depreciation of capital, increases the prevalence and mortality of population, reduces labor productivity and so on.Based on the data of county data in 2014, the model for empirical research used in this dissertation is derived from the Cobb Douglas production function. The study shows that the effect of temperature on income is not completely linear. At lower temperatures,the regions with higher temperatures have higher levels of income; while at higher temperatures, the regions with higher temperatures have lower levels of income. In other words, the relationship between income and temperature is an inverted U-shape. In order to verify the relationship, another empirical study on the influence of different temperature on income is used. Conclusions show that when the temperature is at a low level, the income and temperature are positively correlated, and when the temperature continues to rise to a certain critical value, the income and temperature will show a negative correlation. Finally, this dissertation uses quantile regression to confirm that there is a significant correlation between temperature and income at different income levels, that is, the empirical results are robust. The dissertation provides theoretical support for our country to better formulate macroeconomic policies and better understand the reasons for the imbalance of regional development. Temperature affects economic development, and the harm of global warming to economic development can not be ignored.
Keywords/Search Tags:Temperature, Income, Economic development
PDF Full Text Request
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