The impact of weather on economic growth and its production factors
https://link.springer.com/article/10.1007/s10584-019-02441-6
Summary
Weather conditions negatively or positively affect the economic activities and factors of production. The rise in the frequency of weather triggers concerns in many nations, particularly developing countries about economic growth as well as elements of production. Thus it is essential to manage extreme weather conditions such as tornadoes, ice storms as well as tropical cyclones because they have an impact on the economic growth and factors of production.
The weather influences a nation’s GDP as well as factors of production. The main effect of weather on economic growth and factors of production, such as capital, land, labor, and entrepreneurship, arises through temperature. High temperatures impact developing countries through adverse health effects, decreased agricultural output, and decreased workers’ productivity. Thus, weather affects per capita GDP development through factors of production, and the most significant impact is on the factors productivity. Temperatures have negative implications for economic growth and factors of production.
Additionally, significant hurricanes preclude from accessing their jobs. Primarily this creates a decline in the revenue collected by the nations through taxes. The revenue collected could have been used in the provision of social amenities such as schools, hospitals, and better roads. Due to the lack of adequate means of transport, economic growth through trade is adversely affected. More so, factors of production, such as capital and entrepreneurship, are affected since employees can’t reach their respective workplaces on time. Besides, there is a massive decline in sales and revenue during rainfall and snow. It is essential to establish a mechanism on how to control adverse weather conditions.
Overall, weather affects economic growth and factors of production. Nations need to control weather conditions such as tornadoes since they adversely affect economic growth and factors of production. For instance, high temperature affects developing countries’ economic growth and factors of production by causing decreased workers’ productivity and reducing agricultural output.
References
Henseler, M., & Schumacher, I. (2019). The impact of weather on economic growth and its production factors. Climatic Change, 154(3-4), 417-433. doi:10.1007/s10584-019-02441-6