The Economics Of Hot Weather

February 23, 2015 in Daily Bulletin

In the North East of the United States and freezing? Matthew Yglesias has, what many will consider, cold words of comfort. Cold days are better than hot days for the economy:

  • Temperatures above 15 degrees Celsius reduce America’s economic productivity.
  • This effect is only seen on weekdays, where a temperature above 30 degrees Celsius is expected to cost a country $20 per person.
  • This is due to the heat’s effect on agriculture and because employees just don’t seem to like working when it’s warm out – even with air conditioning.
  • If America could control the weather and optimize it for economic development then income growth could be boosted by 1.7% a year.
  • This could explain why countries in the colder north – such as many European ones – are richer than countries in the warmer south.
  • This also has implications for what climate change could do to economic growth.

See some charts, read additional details, and find more over here.

Source: Vox