Climate change and economic growth in Brazil

Abstract

Brazil has felt the effects of climate change through significant variability in precipitation resulting in droughts and floods (Grimm, Pal, and Giorgi 2007; Verner and Tebaldi, forthcoming). This article contributes to the literature by examining the impact of rainfall variations on GDP growth rates of Brazilian states. The estimates suggest that spring droughts as well as spring droughts combined with summer floods impact Northeastern Brazil most severely. Because the Northeast has historically been the most economically deprived region in the country, the results suggest that climate events could aggravate inequality throughout the nation.