Climate change and global inequality

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Climate change and global inequality Marshall Burke Department of Earth System Science Center on Food Security and the Environment Stanford University Reducing Inequality in a Sustainable World Conference Berkeley, Mar 5 2015 [With thanks to co-authors Sol Hsiang and Ted Miguel (Berkeley)]

Transcript of Climate change and global inequality

Page 1: Climate change and global inequality

Climate change and global inequality

Marshall Burke!Department of Earth System Science Center on Food Security and the Environment Stanford University !!Reducing Inequality in a Sustainable World Conference Berkeley, Mar 5 2015 !![With thanks to co-authors Sol Hsiang and Ted Miguel (Berkeley)]

Page 2: Climate change and global inequality

Impact of climate change

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Impact of climate change

Main question: what are the costs of climate inaction?!‣for local and global economic output ‣for poverty and inequality

Page 4: Climate change and global inequality

Impact of climate change

Main question: what are the costs of climate inaction?!‣for local and global economic output ‣for poverty and inequality

What we need to know: 1. how much will the climate change (“business as usual”) 2. how will humans (+systems on which they depend) respond

Page 5: Climate change and global inequality

Impact of climate change

Main question: what are the costs of climate inaction?!‣for local and global economic output ‣for poverty and inequality

What we need to know: 1. how much will the climate change (“business as usual”) 2. how will humans (+systems on which they depend) respond

Climate science tells us #1.

Page 6: Climate change and global inequality

Impact of climate change

Main question: what are the costs of climate inaction?!‣for local and global economic output ‣for poverty and inequality

What we need to know: 1. how much will the climate change (“business as usual”) 2. how will humans (+systems on which they depend) respond

Climate science tells us #1.History gives us a clue about #2.

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The news from climate science…

IPCC AR5 2013

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The news from recent historyHow do people respond to changes in climate?

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The news from recent history

PRODUCTIVITY OF CROPS

How do people respond to changes in climate?

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Plants don’t like it hot

US maize yields

Schlenker and Roberts 2009

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Plants don’t like it hot

US maize yields

Schlenker and Roberts 2009

African maize yields

Lobell et al 2011

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Plants don’t like it hot

US maize yields

Schlenker and Roberts 2009

Rule of thumb: -1% yield for every day spent above 30C

African maize yields

Lobell et al 2011

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The news from recent history II

PRODUCTIVITY OF PEOPLE!PRODUCTIVITY OF CROPS

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People don’t like it hot

Graff Zivin and Neidell 2014

Temperature and hours worked (US)

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People don’t like it hot

Graff Zivin and Neidell 2014

Temperature and hours worked (US)

% p

rodu

ctio

n lo

ss

-4

-3

-2

-1

0

US India

Temperature and production

manufacturing (days > 32C)

manufacturing (days > 25C)

Cachon and Olivares 2012; Adhvaryu et al 2014

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News from recent history III

PEACEFULNESS OF PEOPLE!PRODUCTIVITY OF PEOPLE!PRODUCTIVITY OF CROPS

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Hot under the collar?

BENVOLIO (TO MERCUTIO)

I pray thee, good Mercutio, let’s retire.The day is hot, the Capulets abroad,And if we meet we shall not ’scape a brawlFor now these hot days is the mad blood stirring. !

— Shakespeare, Romeo and Juliet (then Tybalt kills Mercutio, Romeo kills Tybalt, etc..)

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Hsiang Burke Miguel 2013

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Hsiang Burke Miguel 2013

Re-analyzing ~25 studies, we find for 1 sd increase in temperature: • 10% increase in group conflict (e.g. civil war) • 2% increase in individual conflict (e.g. murder)

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History speaks. “micro” evidence tells us that: !when it’s really hot: less food, less production, less peace

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But at a global scale? !!

Past: Does “macro” reflect “micro”? Future: growth & inequality as climate changes?

History speaks. “micro” evidence tells us that: !when it’s really hot: less food, less production, less peace

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Assemble: 50 years of growth data for >150 countries !Ask: How do changes in temperature affect aggregate economic performance, past and future?

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0 5 10 15 20 25 30

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annu

al g

row

th in

GD

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annual avg. temperature ( C)

global distribution of temperature observations

global distribution of populationat each temperature

global distribution of GDPat each temperature

US

China

GermanyJapan India

Nigeria

IndonesiaBrazil

FranceUK

Burke Hsiang Miguel 2015

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Burke Hsiang Miguel 2015

−1 0 1ppt effect on growth rate

Effect of a +1C temperature increase on growth

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Now run the world forward:

2020 2060 2100Index

1

−80

−40

0

40

80Germany

2020 2060 2100Index

1

−80

−40

0

40

80US

2020 2060 2100

1

−80

−40

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2020 2060 2100

1

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−40

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2020 2040 2060 2080 2100

−60

−40

−20

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20

40

60

chan

ge in

glo

bal G

DP/

cap

(%)

Global

2100, with “business as usual” emissions (RCP8.5):

% c

hang

e in

GD

P/ca

pita

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Now run the world forward:

2020 2060 2100Index

1

−80

−40

0

40

80Germany

2020 2060 2100Index

1

−80

−40

0

40

80US

2020 2060 2100

1

−80

−40

0

40

80China

2020 2060 2100

1

−80

−40

0

40

80Nigeria

2020 2040 2060 2080 2100

−60

−40

−20

0

20

40

60

chan

ge in

glo

bal G

DP/

cap

(%)

Global

2100, with “business as usual” emissions (RCP8.5):

% c

hang

e in

GD

P/ca

pita

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The rich stay the same, poor get poorer

2020 2040 2060 2080 2100

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year

aver

age

chan

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GD

P/ca

p (%

)Average effects by 2010 income quintile

richest 20% in 2010

poorest 20% in 2010

20th-40th pctile

60th-80th pctile

40th-60th pctile

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What do we learn?

If we do nothing about climate change:!

‣ Likely that we will be substantially poorer on average

‣ Very likely that any negative impacts will disproportionately fall on poorest countries ‣ poor countries are already quite hot

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What do we learn?

If we do nothing about climate change:!

‣ Likely that we will be substantially poorer on average

‣ Very likely that any negative impacts will disproportionately fall on poorest countries ‣ poor countries are already quite hot

Damages are potentially so large that emissions reductions are likely to be win-win:!

! global inequality reducing, sustainability promoting!