This paper develops geographical spatial analysis of macroeconomic variables to understand climate change sensitivities and impacts. The approach is promising because it provides a way to overcome partial equilibrium analysis based on specific sectors as well as provides the analysis at a larger scale appropriate for climate change study. In addition, this approach enables researchers to examine non-market sector effects such as ecosystem shifts, human and animal settlements change, and human health related issues. Our results indicate that economic activities as well as non-market factors such as human settlements and animal density are not particularly sensitive to different climates. The analysis indicates that humans as well as animals have adjusted well to different climates. Our results show that geographical adversities such as high mountains, inland without access to the oceans, very steep locations have the greatest impacts on the lives of the humans and animals.
Sungno Niggol Seo received a Ph.D. in Environmental and Natural Resource Economics with a focus on global climate policy from Yale University and has been working with the World Bank since 2003 on various climate projects. He is a Research Professor at the Basque Center for Climate Change in Spain.