Unveiling the Spatial Effects of Climate Change on Economic Growth: International Evidence

Climate change represents one of the most serious threats to well-being humanity. In recent decades, there has been a significant increase in amount research dedicated analysing economic impacts climate change. Nevertheless, spatial aspect not addressed. This is first empirically assess both direct and indirect (spillover) effects change, as measured by temperature variations, on growth. The empirical analysis based balanced dataset for 86 countries between 1980 2019. preliminary suggests presence autocorrelation suitability dynamic autoregressive model spillover results full sample reveal that are no substantial short- or long-run When decomposed income, indicates growth only low–middle-income over long run. decomposition according regime also yields interesting findings exerts adverse hottest These robust since they hold regardless whether contiguity weight matrix inverse distance used. advocates international collaboration design implementation mitigation adaptation strategies.