The Park Place Economist


The climate crisis is increasingly impacting all aspects of society. This paper seeks to answer how vulnerability to climate change impacts GDP per capita. To do so, an OLS regression is run to measure GDP per capita’s sensitivity to the ND-GAIN Vulnerability Index across 178 countries from 1995 to 2018. A time-trend regression is used to determine the sensitivity coefficient. The results show vulnerability to climate change negatively impacts GDP per capita, with sensitivity increasing as years progress. These findings indicate the need for immediate action on a local and international level.