Economic consequences of climate change impacts: the case of Atlantic Canada
University of New Brunswick
Climate change poses wide-reaching challenges for regional economy. We study economic consequences of climate change impacts for Atlantic Canada. Designed economic and statistical models describe relationship between economic performance measure, which is regional value added, and two sets of control variables: economic and climate. Statistical model represents linear multiple regression, set in terms of panel data for five regional transportation with autoregressive term for dependent variable. Obtained results showed the negative effect of rising temperature on regional economic performance: if average annual temperature increases by one degree Celsius, it decreases regional value added by 1.74%. Along with an increase in temperature, the rise of the sea level by 1 meter would reduce regional value added by more than 11% meaning that coastal sub-region in Atlantic Canada is highly vulnerable to weather variation and change in climate patterns.