Average labor productivity in the Thai manufacturing sector is hypothesized to have adverse effect from rising temperature. The study applied Business and Manufacturing Census 2012 and found that 10 out of 12 sub-sectors are statistically significant with an expected negative sign. If Thailand would face with climate change volatility, it is projected that the climate change raises temperature from Baseline scenario by 2.5, 5.5, 6.0, and 7.5%, respectively. Present value of the damage of climate change is estimated to be 95,519 million baht in 2020. The loss has increased to 160,335 million baht in 2050 (in current prices). Damage is expected to be 4.63% in 2020 and 3.95% in 2050 of gross output of manufacture (in 2012 prices), respectively. The government may use fiscal and monetary policy to reshape the cost–benefit of investing in the adaptation of roofing and internal air temperature control. The firm is recommended to implement a medical rehabilitation for affected employees at the firm level to avoid relocation and absenteeism of workers.
Asia-Pacific Journal of Regional Science – Springer Journals
Published: Mar 14, 2018
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