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Related Experiment Video

Updated: Jul 25, 2025

Using Generative Art to Convey Past and Future Climate Transitions
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Published on: March 31, 2023

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Does climate change affect economic data?

In Choi1

  • 1Sogang University, Seoul, Korea.

Empirical Economics
|June 26, 2023
PubMed
Summary
This summary is machine-generated.

This study reveals increased volatility in seasonal factors for US temperature, gasoline, and food prices over four decades. These patterns suggest climate change may influence price volatility, impacting economic stability.

Keywords:
Climate changeFresh food priceGasoline priceKalman state smootherPrincipal component analysisSeasonal factorTemperature

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Area of Science:

  • Economics
  • Environmental Science
  • Statistics

Background:

  • Seasonal patterns are crucial for understanding economic time series.
  • Recent decades show significant shifts in climate and economic data.
  • The interplay between environmental changes and price volatility is not fully understood.

Purpose of the Study:

  • To derive and analyze seasonal factors from US temperature, gasoline, and fresh food price data.
  • To investigate common patterns and volatility changes in these seasonal factors.
  • To explore the potential impact of climate change on price volatility.

Main Methods:

  • Kalman state smoother for time series analysis.
  • Principal component analysis for identifying common factors.
  • Autoregressive process modeling for seasonality.

Main Results:

  • Seasonal factors were successfully derived from the datasets.
  • A notable increase in the volatility of these seasonal factors over the past 40 years was observed.
  • Similar patterns emerged across temperature, gasoline, and food prices starting in the 1990s.

Conclusions:

  • Climate change is a significant factor reflected in temperature data.
  • The synchronized patterns in price data suggest climate change may be influencing price volatility.
  • Further research is needed to quantify the economic impact of climate-driven price volatility.