Climate-response functions

This paper develops climate-response functions for sensitive market sectors in the United States' economy using two empirical methods. The experimenta l approach constructs a process-based impact model from the results of cont rolled experiments. Reduced-form equations can be estimated from the model responses to multiple climate scenarios. The cross-sectional approach estim ates response functions directly from empirical evidence in the field. Both methods indicate that agriculture, forestry, and energy have a hill-shaped relationship to temperature. Precipitation, sea-level rise, and carbon dio xide are also important.