Climate Change and Economic Outcomes: a State-Level Analysis in the US

Abstract

Growing economic inequality and increasing climate disruption are two major issues that are not always studied in accordance despite their interconnectedness. A better understanding of their relationship can help policy makers address both of these issues. Combining data from a study on city-level climate risk and readiness with data from the 2020 US Census, I run a series of OLS regressions to estimate the size effect of these two variables on 3 different economic outcomes. Although further research is required to establish causality, my findings suggest climate risk and unemployment rates are associated, in turn suggesting that policy-makers consider tackling both issues simultaneously.