Climate, desertification, and local human development: evidence from 1564 regions around the world

How global warming affects human development is a central question for economists as well as social scientists. While most of the literature has focused on the impact of weather on income, less is known on the relationship between climate and local human development. This paper considers shocks in precipitation, temperature, and an original measure of soil aridity to first exploit the association between climate warming and human development, and second, on its dimensions. We show that while precipitations do not have a significant long-term impact on human development growth, variations in temperature and potential evapotranspiration negatively affect two of the three determinants of the Human Development Index, namely life expectancy at birth and education. These results suggest that other climate indicators, such as the potential evapo-transpiration of the soil, should be considered in addition to the standard indicators, when evaluating the localized economic effects of climate change.