While a growing body of literature studies the effects of weather shocks on economic activity in low-income countries, relatively little is known about their impact on cross-border capital flows. This study investigates whether weather shocks, specifically deviations in precipitation and temperature from their long-term averages, trigger capital flight from Africa. Exploiting the variation in within-country exposure to weather shocks, we find that temperature shocks lead to increased capital outflows and trade misinvoicing. The long-run relationship between temperature and capital flight is conditional upon country-specific factors, such as reliance on oil exports, institutional frameworks and financial infrastructures. Our findings reveal a moderate role of state capacity in the relationship between weather shocks and capital flight, highlighting the need for further investigation into other potential mechanisms.

Using a dynamic computable general equilibrium model that differentiates cropping activities and labour by sex and includes household home production, this study examines the effects of rainfall variability in Burkina Faso from both a macroeconomic perspective and a gender lens. The simulation of the annual rainfall pattern observed in the country over the past decade highlights its broad economic effects and confirms the greater sensitivity of female-led cropping activities. It also underscores the differential impacts on female and male workers in the labour market and within households, revealing the interactions between the non-market and market spheres of the economy when a rainfall shock occurs. Nevertheless, additional simulations suggest that promoting water management systems or more water-stress-resistant crop varieties could help mitigate the effects of rainfall variability and that targeted measures to support female farmers could effectively reduce their specific vulnerability.

While previous scientific literature has found evidence that warming winters result in a loss of crop yields, recent studies suggest that temperature alone may not be the sole factor in determining yields. In this study, we investigate multiple climatic factors (freezing degree days (FDD) and snow cover fraction) to evaluate the heterogeneous impact of snowpack insulation on winter wheat yields in China. We find that a unit increase in FDD causes a loss of 2.37 kg/hectare in winter wheat yields. Furthermore, our results show that snowpack insulation has a statistically significant negative effect on winter wheat yields at lower and middle quantiles, but a statistically significant positive effect at higher quantiles of the winter wheat yields distribution, suggesting that snowpack insulation is important in maintaining higher winter wheat yields.

Environmental outcomes can be shaped by underlying politics. This study investigates whether pre-determined election timings affect these outcomes by combining electoral data with remote sensing data on crop burning, forest fires, slash-and-burn activity, and tree cover for 28 major states (covering approximately 3800 assembly constituencies) in India from 2008 to 2019. Analysing 71 elections during this period reveals evidence of the presence of electoral cycles in environmental outcomes, with non-election years experiencing higher levels of environmentally harmful activities compared to election years. These cycles are more pronounced when the incumbent’s party wins without a supermajority in state elections. The study further shows that specific factors, such as high-yield crop varieties, poverty levels, and Scheduled Tribe population proportions, also shape these environmental outcomes across the electoral cycle.