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Changing Environment Impacts Manufacturing in China

Recently a research team from UC Santa Barbara has demonstrated a research. According to this new study, the climate change will dramatically lower output for the Chinese manufacturing sector. The researchers have carried out the research after using the detailed production data from half-million Chinese manufacturing plants in the period 1998-2007. The researchers evaluated the effects of temperature on firm-level productivity including factor of input and output

.The researchers also estimated, by the middle of the 21st century, if no additional adaptations occur, climate change will reduce Chinese manufacturing output annually by 12 percent. Currently, the Chinese manufacturing sector is producing 32 percent of national gross domestic product (GDP).

The changed effect is similar to a 4 percent drop in overall Chinese GDP annually. Moreover, given that China's manufacturing sector supplies 12 percent of global imports. The co-author of the study, Kyle Meng, added that “previous work has largely focused on how climate change may affect economic activity by lowering the productivity of workers.”


By- Priyanka Negi

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