Tomorrow, Friday 29 November, I will be very pleased to chair the “Climate-related risks” session during the 14th JT of the French Association of Environmental and Resources Economists: https://jt-faere-epr24.sciencesconf.org/.
I will present my recent joint work with John Beirne, Donghyun Park and Gazi Salah Uddin: ADB Economics Working paper 748.
Our causal identification relies on the fact that government bond yields and sovereign ratings on foreign currency debt do not influence changes in the ND-GAIN vulnerability scores at any horizon.
Key results:
▶️ Political stability reduces the fiscal impact of climate vulnerability risks
▶️ Financial development also limits the climate risk premium
▶️ The most vulnerable economies face the largest climate-related fiscal risks
▶️ Religious tensions are the most impactful form of political instability
▶️ Stable politics and strong markets together mitigate fiscal risks