Firm-Level Climate Adaptation Evidence from 134 Nations

CEPR Discussion Paper DP20513 (Berg et al., 2025) presents micro evidence on firm-level climate change impacts and adaptation across 134 countries using World Bank Enterprise Survey data.

• Main findings and data: Combines World Bank Enterprise Survey data covering 160,000 firms in 134 countries with spatially granular weather data to estimate temperature response functions; finds revenues decline by 12% for small and medium firms in low- and lower-middle income countries (LMCs) when temperatures are 0.5°C above historical averages; labor productivity and wages fall and energy costs rise, with effects concentrated in heat-sensitive sectors; only one-third of firms in LMCs take adaptive measures.
• Policy and constraints: Analysis of firm-reported barriers shows limited financing and burdensome regulation are cited as constraints on firm-level adaptation; methodology and results are presented in CEPR Discussion Paper No. 20513 (CEPR Press, Paris & London).