Abstract
Whereas numerous studies document the impacts of climate change on business activity, evidence on how it aOects the people running those businesses-who may come from diverse socioeconomic backgrounds-remains mixed and not well understood. This study investigates the economic impact of extreme weather events (EWEs) on business activity in New Zealand, with a focus on businesses in Māori and non-Māori communities. Using a novel combination of datasets, including up to 15 years of monthly business sales, meteorological data, demographic statistics, and ancestral geographic markers, we examine how extreme hot and cold temperature, rainfall, and wind events influence sales at the micro level, across over 2,000 statistical area units (SA2s). Extreme heat EWEs significantly reduce business sales, with an average monthly decline of 1.77% and an average annual loss per business unit of $US 23,390 (standard deviation $US 19,189). This eOect follows a non-linear, hump-shaped pattern, intensifying above 23°C. However, despite well documented socioeconomic disparities, Māori and non-Māori populations exhibit virtually identical business responses to EWEs after controlling for location and socioeconomic disparities. This reveals that Indigenous identification alone does not shape business vulnerability to climate-related disruptions. Our findings provide new insights into climate adaptation, Indigenous economic resilience, and sustainable development. They underscore the need for targeted climate policies that address broad business vulnerabilities, rather than directing resources solely based on ethnic or cultural characteristics.