Microclimate risks and urban businesses | Shuang Zhang
Shuang Zhang is an Associate Professor of Economics at Imperial College Business School.
Dr Zhang will present the following paper Microclimate Risks and Urban Businesses.
A heat wave pans out differently across areas within a city. This paper documents these microclimate variations, estimates the damage function on city small businesses, and studies mitigation strategies. We: (1) leverage high-resolution satellite data to document sub-city temperature variations during a hot day; (2) use geo-located revenue and consumer traffic data from over 150,000 restaurants and other service establishments in a mega city of China to estimate the damage function of these microclimate shocks on business outcomes; and (3) present new evidence that urban green spaces around businesses mitigate the microclimate shocks they experience. Our research highlights location microclimate management as an important part of business strategies in the face of rising climate risks.