Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/310380 
Erscheinungsjahr: 
2024
Schriftenreihe/Nr.: 
ADB Economics Working Paper Series No. 750
Verlag: 
Asian Development Bank (ADB), Manila
Zusammenfassung: 
In this paper, we study the implications of climate change on fiscal sustainability and inequality. First, using rich panel data, we show that rising climate-related disaster risks increase government debt and harm fiscal sustainability. We also find that the adverse effect of disaster risks is larger for low-income households, exacerbating inequality. Second, we construct a New Keynesian Dynamic Stochastic General Equilibrium (NK-DSGE) model to examine the implications of the distributional effect of disaster risk. The model features two kinds of households and a fiscal authority. We show that disaster risk has recessionary effects and also causes inequality among households to widen. More specifically, the model indicates that "hand-to-mouth" agents suffer a drop in consumption that is three times larger than that of the Ricardian households. Importantly, we observe a significant rise in sovereign debt due to disaster risk, which poses a challenge to policymakers. Lastly, targeted transfers are recommended but progressive taxes entail a significant fiscal cost.
Schlagwörter: 
climate change
disaster risk
physical risk
heterogeneous agent
fiscal policy
JEL: 
E20
E31
E32
E44
G12
Q54
Persistent Identifier der Erstveröffentlichung: 
Creative-Commons-Lizenz: 
cc-by Logo
Dokumentart: 
Working Paper

Datei(en):
Datei
Größe
612.78 kB





Publikationen in EconStor sind urheberrechtlich geschützt.