Why Are Cold Countries Richer Than Hot Countries?
Economics Explained
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The Relationship Between Average Temperature and GDP Per Capita
Darwin is actually the poorest capital city in Australia, while also being the hottest. For every extra degree Celsius in average national temperature, the expected value of GDP per capita falls by $762 per year. This means that if country A is 10 degrees colder than country B, it is expected to have a GDP per capita $7,620 a year, larger.
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