The impacts of temperature on Chinese food processing firms*

Chen, Xiaoguang; Khanna, Madhu; Lu, Yang

doi:10.1111/1467-8489.12469

Cited by 4 publications

(5 citation statements)

References 61 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In the case of big firms, the associated coefficient is even positive (1.5%, p-value <0.10). This result differs from previous evidence on the Chinese manufacturing and food industry (Chen et al, 2022;Chen & Yang, 2019;Zhang et al, 2018), where the reduction of TFP explains, at least partially, the reduction of the output. In our case, firms could have compensated production losses by adjusting inputs or inventories.…”

contrasting

confidence: 99%

“…This implies that 5 days at this temperature would reduce TFP by −0.6%. Similarly, using the temperature bins approach, Chen et al (2022) find that TFP in Chinese food manufacturing decreases by about 0.4% for each day with an average temperature greater than 30°C. Multiplying it for 5 days brings it to −2%.…”

Section: Discussionmentioning

confidence: 98%

“…Understanding the impacts of increasing temperatures and heat stress on the food system at the industry level is of particular importance, given that a large share of food consumption is made by processed food and that it concerns a non-trivial amount of consumers' income share (primarily low-income persons). An early example of an analysis addressing this issue was conducted by Chen et al (2022), who focused on Chinese food processing firms. Their study shows that productivity and profits in these firms exhibit nonlinear responses to temperature changes, peaking at a daily average temperature of 21-24°C and declining sharply at higher temperatures.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

The impact of heat waves on food industry productivity: Firm‐level evidence from Italy

Nota,

Curzi,

Haase

et al. 2024

J Agricultural Economics

View full text Add to dashboard Cite

This paper investigates the impact of heat waves on the productivity of the Italian food industry. Using daily weather and firm‐level data for the 2004–2019 period, we show that a heat wave causes, on average, a reduction in Total Factor Productivity (TFP) of about 3.2%. Smaller firms are more severely affected, with a reduction of approximately 7%, revealing unequal impacts within the same country and sector. The reduction in TFP can be partially attributed to lower workers' productivity, with labour input increased in order to compensate for productivity loss. The estimated effect is heterogeneous across subsectors, with some well‐known Italian products (e.g., wine production) more severely affected by heat waves. These findings have significant policy implications due to the expected increase in the frequency of heat waves caused by climate change, and are particularly important in the case of the Italian food industry, which is mainly composed of small firms. The paper highlights the need to investigate further the impacts of heat stress on the entire food system, as most of the literature has predominantly focused on the agricultural sector.

show abstract

contrasting

confidence: 99%

Section: Discussionmentioning

confidence: 98%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

The impact of heat waves on food industry productivity: Firm‐level evidence from Italy

Nota,

Curzi,

Haase

et al. 2024

J Agricultural Economics

View full text Add to dashboard Cite

show abstract

“…Firms would also change their inventory in respond to sudden extreme climate events. Chen et al (2022a) find that for each additional day when the temperature exceeds 30 °C, food processing firms will increase their inventory by 0.43%. Second, manufacturing enterprises tend to adjust financial behaviours to adapt to extreme climate risks.…”

Section: Manufacturing Enterprises' Adaptation Behaviours To Extreme ...mentioning

confidence: 98%

“…The strategy management literature has suggested that poor performance may trigger firms to carry out more innovative behaviours (Greve, 2003). As previously mentioned, extreme climate events can affect manufacturing enterprises' production operations, leading to adverse performance outputs (Chen et al, 2022a;Zhang et al, 2018). When manufacturing enterprises encounter poor performance outcomes caused by extreme climate events, they are more likely to adopt green technology innovation to improve organisational resilience, so as to build adaptability to extreme climate events.…”

Section: Potential Heterogeneitiesmentioning

confidence: 99%

The Effects of Extreme Climate Events on Green Technology Innovation in Manufacturing Enterprises

Wang,

Li,

et al. 2024

Journal of Business Economics and Management

View full text Add to dashboard Cite

The increasing intensity and frequency of extreme climate events have made improving the adaptability to extreme climate events a strategic imperative for manufacturing companies. This paper investigates whether manufacturing enterprises increase green technology innovation affected by different extreme climate events. Based on panel data of Chinese listed manufacturing enterprises, we show that extreme precipitation events can positively promote green technology innovation, yet extreme temperature events do not. Heterogeneity analyses suggest that the effect of extreme precipitation events on green technology innovation is more significant for non-state-owned enterprises, poor performance enterprises, and high R&D intensity enterprises than other enterprises. Furthermore, the facilitating effect of extreme precipitation events on green technology innovation is merely temporary.

show abstract

The impacts of extreme heat on wage losses: Evidence from the Chinese agri‐food industry

Zhu,

Deng

2024

Agribusiness

View full text Add to dashboard Cite

This paper investigates the effects of extremely high temperatures on wage losses for workers in the Chinese agri‐food industry. Our estimated results suggest extreme heat is associated with a decrease in worker wages, and that these welfare losses could be attributed to the adverse impacts of extremely hot days on worker productivity. We also observe that, compared to male workers, female workers are more likely to bear wage losses when exposed to extremely hot weather. Furthermore, workers in private firms may experience more wage losses due to extremely hot days than those in other ownership types. Regarding the industry‐level heterogeneity analysis, we find that wage losses in the agri‐food manufacturing industry are more severe than those in the agri‐food processing industry, while no significant wage losses are observed in the beverages and alcohol industry. In the long term, wage losses induced by climate change are projected to rise by 10.93% under RCP8.5, if no extra adaptation actions are implemented. [EconLit Citations: O13, P46, Q54]

show abstract

The impacts of temperature on Chinese food processing firms*

Cited by 4 publications

References 61 publications

The impact of heat waves on food industry productivity: Firm‐level evidence from Italy

The impact of heat waves on food industry productivity: Firm‐level evidence from Italy

The Effects of Extreme Climate Events on Green Technology Innovation in Manufacturing Enterprises

The impacts of extreme heat on wage losses: Evidence from the Chinese agri‐food industry

Contact Info

Product

Resources

About