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Temperature rise 'slows economy in poor countries'

Small increases in temperature may have reduced the industrial and agricultural production of poor countries, according to a study by US economists. The impact of temperature on political instability may be "one mechanism through which temperature might affect productivity growth", according to the paper. But further work is needed to determine why both a country's economy and its political stability are affected by temperature, the authors said.

Higher temperatures may also have contributed to political instability in these countries - defined as those with below-median per capita income, adjusted for the purchasing power of the country's currency - according to the study published in the American Economic Journal: Macroeconomics last month. In contrast, rich countries have so far shown no measurable economic or political consequences resulting from temperature change.

Link: http://www.scidev.net/en/climate-change-and-energy/climate-change-impacts/news/temperature-rise-slow...
Added by View user profileD C on August 20, 2012