The effects of climate change on the wellbeing

Abstract

This research aims to determine the effects of climate change on the wellbeing using the correlational, non-experimental method of Ordinary Least Squares (OLS) and the System Generalized Method of Moments (SGMM). Considering a database of annual national time series (1950-2023) and regional panel data (2014-2023). The per capita gross domestic product (GDP) as dependent variable and climate change indicators, temperature, rainfall, "El Niño" and "La Niña" events, among other control variables. At both national and regional levels, it is confirmed that temperature increases negatively affects the wellbeing. It is not clear that rainfall harms the country. The arid coast requires water to develop its agro-industry. However, isolating rainfall from the rural highlands and jungle resulted in non-significant effects, as did the "El Niño" and "La Niña" durations. In contrast, the extraordinary “El Niño" events of 1957, 1972, 1983 and 1998 negatively affected the wellbeing