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The Fine Print I:
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The Fine Print II:
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This paper analyzes the effects of extreme temperature on manufacturing output using a dataset covering the universe of manufacturing establishments in Canada from 2004 to 2012. Extreme temperature can affect manufacturing activity by affecting separately or jointly labour productivity and labour inputs. Using a panel fixed effects method, our results suggest a non linear relationship between outdoor extreme temperature and manufacturing output. Each day where outdoor mean temperatures are below -18°C or above 24°C reduces annual manufacturing output by 0.18% and 0.11%, respectively, relative to a day with mean temperature between 12° to 18°C. In a typical year, extreme temperatures, as measured by the number of days below -18°C or above 24°C, reduce annual manufacturing output by 2.2%, with extreme hot temperatures contributing the most to this impact. Given the predicted change in climate for the mid and end of century, we predict annual manufacturing output losses to range between 2.8 to 3.7% in mid-century and 3.7 to 7.2% in end of century.
If you woke up in southern Saskatchewan today, chances are it is windy, and the sun is shining. Regina and Saskatoon are among the sunniest cities in all of Canada, and southern Saskatchewan has some of the highest solar photovoltaic potential in North America (Government of Canada nd). It also has some of the highest wind energy potential on the continent (Saskwind nd). Yet there is little solar or wind energy production occurring in the province — indeed, at present, wind contributes 5% and solar contributes less than 3% of energy consumed. Instead, Saskatchewan is known as an oil and gas economy with a dependence on coal for electricity and a deep opposition to carbon pricing. While high oil prices and a shale oil revolution initially led to a “Saskaboom,” the tides have quickly turned. With the collapse in oil prices in 2014 and the COVID-19 crisis of 2019-2020, boom has turned to bust, and oil and gas communities are hurting.