This thesis seeks to advance our understanding of climatic influence on economic outcomes. The approach taken places emphasis on understanding the channels and mechanisms through which weather has an effect, and through which climate change could have an effect, on economic behaviour – rather than estimating the impact of future climate change – to better inform the design and implementation of policy. This thesis is composed of four papers that adopt this new paradigm, providing new insights into how weather affects economic outcomes today, how economic agents respond to and manage the economic consequences of changes in their natural environment, and providing explicit mechanisms through which the impacts of, and adaptation to, climate change could affect economic outcomes in the future.