Rethinking Climate Econometrics: Data Cleaning, Flexible Trend Controls, and Predictive Validation

Fuente: arXiv
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Main Authors: Schötz, Christof, Hassel, Jan, Otto, Christian
Format: Preprint
Published: 2025
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author Schötz, Christof
Hassel, Jan
Otto, Christian
author_facet Schötz, Christof
Hassel, Jan
Otto, Christian
contents We assess empirical models in climate econometrics using modern statistical learning techniques. Existing approaches are prone to outliers, ignore sample dependencies, and lack principled model selection. To address these issues, we implement robust preprocessing, nonparametric time-trend controls, and out-of-sample validation across 700+ climate variables. Our analysis reveals that widely used models and predictors-such as mean temperature-have little predictive power. A previously overlooked humidity-related variable emerges as the most consistent predictor, though even its performance remains limited. These findings challenge the empirical foundations of climate econometrics and point toward a more robust, data-driven path forward.
format Preprint
id arxiv_https___arxiv_org_abs_2505_18033
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Rethinking Climate Econometrics: Data Cleaning, Flexible Trend Controls, and Predictive Validation
Schötz, Christof
Hassel, Jan
Otto, Christian
Applications
Methodology
We assess empirical models in climate econometrics using modern statistical learning techniques. Existing approaches are prone to outliers, ignore sample dependencies, and lack principled model selection. To address these issues, we implement robust preprocessing, nonparametric time-trend controls, and out-of-sample validation across 700+ climate variables. Our analysis reveals that widely used models and predictors-such as mean temperature-have little predictive power. A previously overlooked humidity-related variable emerges as the most consistent predictor, though even its performance remains limited. These findings challenge the empirical foundations of climate econometrics and point toward a more robust, data-driven path forward.
title Rethinking Climate Econometrics: Data Cleaning, Flexible Trend Controls, and Predictive Validation
topic Applications
Methodology
url https://arxiv.org/abs/2505.18033