Extreme Weather Events and Economic Activity: The Case of Low Water Levels on the Rhine River

Authors

• Ademmer
• M.
• Jannsen
• N.
• Meuchelböck
• S.

Publication Date

DOI

10.1515/ger-2022-0077

JEL Classification

Key Words

Related Topics

We make use of historical data on water levels on the Rhine river to analyze the impact of weather-related supply shocks on economic activity in Germany. Our analysis shows that low water levels lead to severe disruptions in inland water transportation and cause a significant and economically meaningful decrease of economic activity. In a month with 30 days of low water, industrial production in Germany declines by about 1 percent, ceteris paribus. Our analysis highlights the importance of extreme weather events for business cycle analysis and contributes to gauging the costs of extreme weather events in advanced economies.

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