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    Future heat stress to reduce people’s purchasing power
    (San Francisco, Ca. : PLOS, 2021) Kuhla, Kilian; Willner, Sven Norman; Otto, Christian; Wenz, Leonie; Levermann, Anders
    With increasing carbon emissions rising temperatures are likely to impact our economies and societies profoundly. In particular, it has been shown that heat stress can strongly reduce labor productivity. The resulting economic perturbations can propagate along the global supply network. Here we show, using numerical simulations, that output losses due to heat stress alone are expected to increase by about 24% within the next 20 years, if no additional adaptation measures are taken. The subsequent market response with rising prices and supply shortages strongly reduces the consumers’ purchasing power in almost all countries including the US and Europe with particularly strong effects in India, Brazil, and Indonesia. As a consequence, the producing sectors in many regions temporarily benefit from higher selling prices while decreasing their production in quantity, whereas other countries suffer losses within their entire national economy. Our results stress that, even though climate shocks may stimulate economic activity in some regions and some sectors, their unpredictability exerts increasing pressure on people’s livelihood.
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    Characterizing the sectoral development of cities
    (San Francisco, California, US : PLOS, 2021) Rybski, Diego; Pradhan, Prajal; Shutters, Shade T.; Butsic, Van; Kropp, Jürgen P.; Xue, Bing
    Previous research has identified a predictive model of how a nation’s distribution of gross domestic product (GDP) among agriculture (a), industry (i), and services (s) changes as a country develops. Here we use this national model to analyze the composition of GDP for US Metropolitan Statistical Areas (MSA) over time. To characterize the transfer of GDP shares between the sectors in the course of economic development we explore a simple system of differential equations proposed in the country-level model. Fitting the model to more than 120 MSAs we find that according to the obtained parameters MSAs can be classified into 6 groups (consecutive, high industry, re-industrializing; each of them also with reversed development direction). The consecutive transfer (a → i → s) is common but does not represent all MSAs examined. At the 95% confidence level, 40% of MSAs belong to types exhibiting an increasing share of GDP from agriculture. In California, such MSAs, which we classify as part of an agriculture renaissance, are found in the Central Valley.
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    Association between population distribution and urban GDP scaling
    (San Francisco, California, US : PLOS, 2021) Ribeiro, Haroldo V.; Oehlers, Milena; Moreno-Monroy, Ana I; Kropp, Jürgen P.; Rybski, Diego
    Urban scaling and Zipf’s law are two fundamental paradigms for the science of cities. These laws have mostly been investigated independently and are often perceived as disassociated matters. Here we present a large scale investigation about the connection between these two laws using population and GDP data from almost five thousand consistently-defined cities in 96 countries. We empirically demonstrate that both laws are tied to each other and derive an expression relating the urban scaling and Zipf exponents. This expression captures the average tendency of the empirical relation between both exponents, and simulations yield very similar results to the real data after accounting for random variations. We find that while the vast majority of countries exhibit increasing returns to scale of urban GDP, this effect is less pronounced in countries with fewer small cities and more metropolises (small Zipf exponent) than in countries with a more uneven number of small and large cities (large Zipf exponent). Our research puts forward the idea that urban scaling does not solely emerge from intra-city processes, as population distribution and scaling of urban GDP are correlated to each other.