Climate impacts on geographical changes in the energy industry

• Published in: Business Strategy and the Environment
• Main Authors: Solji Nam, Jungwoo Shin, Jaena Ryu, Hanee Ryu
• Format: Article in Journal/Newspaper
• Language: unknown
• Subjects: Arctic; Arctic Ocean; Climate change; Global warming
• Online Access: https://doi.org/10.1002/bse.2632

Owing to global warming, ice in the Arctic Ocean has shrunk by 2.7% every 10 years since 1978, resulting in tremendous damage. This study uses the Cobb–Douglas production function to analyze the impact of abnormal weather on energy industry production using temperature and precipitation indicators. In particular, the government identified the impact of abnormal weather conditions on manufacturing and public works related to the Korean energy industry. The results showed that the numbers of freezing days and heavy rain days adversely affect public works, whereas hot and cold days and heavy rain days all positively affect the production of coal, petroleum, and chemical products. These results also led to regional risk assessments of the energy industry. This study can help in developing the 2030 industry climate change adaptation plan.