NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Using Weather Data and Climate Model Output in Economic Analyses of Climate Change

Maximilian Auffhammer, Solomon M. Hsiang, Wolfram Schlenker, Adam Sobel

NBER Working Paper No. 19087
Issued in May 2013
NBER Program(s):   EEE

Economists are increasingly using weather data and climate model output in analyses of the economic impacts of climate change. This article introduces weather data sets and climate models that are frequently used, discusses the most common mistakes economists make in using these products, and identifies ways to avoid these pitfalls. We first provide an introduction to weather data, including a summary of the types of datasets available, and then discuss five common pitfalls that empirical researchers should be aware of when using historical weather data as explanatory variables in econometric applications. We then provide a brief overview of climate models and discuss two common and significant errors often made by economists when climate model output is used to simulate the future impacts of climate change on an economic outcome of interest.

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Document Object Identifier (DOI): 10.3386/w19087

Published: Using Weather Data and Climate Model Output in Economic Analyses of Climate Change Maximilian Auffhammer*, Solomon M. Hsiang†, Wolfram Schlenker§ and Adam Sobel‡ Rev Environ Econ Policy (Summer 2013) 7 (2): 181-198. doi: 10.1093/reep/ret016

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