Research Spotlight

Impact of Climatic Conditions on GDP

The Paris Agreement has entered into force today, November 4, 2016 and aims to strengthen global response to the threat of climate change. What if no such efforts were made to combat climate change and what does temperature increase mean for India?
A one degree Celsius increase in daily mean temperatures would on an average decrease agricultural output by 11% in India. The overall GDP, as a result, would reduce by 28%, making the 8% per annum GDP growth rate a pipe dream. The consequences of climate change could be devastating, if policy makers continue to ignore it. Agricultural output would fall resulting in food shortages and inflationary pressures in the years to come.
Ashwini Chhatre and his co-authors from Indian School of Business (ISB) in their research reveal how an overall increase in annual average temperatures negatively affects income. Read more