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Informative Article | Commerce and Economic Studies | Volume 15 Issue 7, July 2026 | Pages: 2408 - 2412 | India
The Economic Costs of Climate Variations in Kerala: A Multi-Sectoral Empirical Analysis
Abstract: Kerala has been experiencing stronger climate variations in recent years, including floods, landslides, irregular monsoons, and rising sea surface temperatures, all of which have caused serious economic losses. This study estimates the economic cost of these climate-related changes in Kerala during 2011-2024, with a focus on agriculture and plantations, fisheries, tourism, infrastructure, and public finance. It draws on secondary data from government and institutional sources and uses descriptive statistics, trend tests, correlation analysis, regression models, and ANOVA to examine how climate variables are linked to sectoral economic outcomes. The findings show clear upward trends in mean annual temperature and the frequency of extreme events. Total climate-attributable losses across the major sectors are estimated at about Rs. 1,54,794 crore, or roughly Rs. 11,057 crore per year on average. Climate variables explain a substantial share of the variation in sectoral outcomes, with extreme-event frequency and sea surface temperature anomaly emerging as the most important predictors. The ANOVA results also indicate that climate-sensitive sectors weakened significantly after 2011-2015. In addition, the study points to a compounding fiscal risk, as disaster-related spending rises while revenues fall, causing Kerala?s revenue deficit to widen by more than three times. Overall, the findings suggest that Kerala faces a structural economic risk because of its climatic vulnerability. The paper recommends integrated policy measures covering climate-resilient agriculture, fisheries adaptation, climate-proof tourism and infrastructure, dedicated climate risk financing, and stronger institutional data systems. These findings are also relevant for other climate-vulnerable sub-national economies in India.
Keywords: Climate variation, economic cost, Kerala, extreme events, sectoral impact, climate risk financing, Mann-Kendall
How to Cite?: Dr. Amutha R., "The Economic Costs of Climate Variations in Kerala: A Multi-Sectoral Empirical Analysis", Volume 15 Issue 7, July 2026, International Journal of Science and Research (IJSR), Pages: 2408-2412, https://www.ijsr.net/getabstract.php?paperid=SR26729222036, DOI: https://dx.doi.org/10.21275/SR26729222036