Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/153489
Authors: 
Lis, Eliza M.
Nickel, Christiane
Year of Publication: 
2009
Series/Report no.: 
ECB Working Paper 1055
Abstract: 
This paper explores implications of climate change for fiscal policy by assessing the impact of large scale extreme weather events on changes in public budgets. We apply alternative measures for large scale extreme weather events and conclude that the budgetary impact of such events ranges between 0.23% and 1.1% of GDP depending on the country group. Developing countries face a much larger effect on changes in budget balances following an extreme weather event than do advanced economies. Based on these findings, we discuss implications for fiscal policy and publiclyprovided disaster insurance. Our policy conclusions point to the enhanced need to reach and maintain sound fiscal positions given that climate change is expected to cause an increase in the frequency and severity of natural disasters.
Subjects: 
climate change
disasters
Fiscal sustainability
Global warming
JEL: 
Q54
Q58
F59
H87
Document Type: 
Working Paper

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