This paper analyzes the effects of climate change on budgetary sustainability and inequality.
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- DOI
- http://dx.doi.org/10.22617/WPS240514-2
- Dimensions
- 8.5x11
- ISSN
- 2313-6537(print) 2313-6545(PDF)
- Pages
- 34
- Published in
- Philippines
- SKU
- WPS240514-2
- pages
- 32
Table of Contents
- Abstract 4
- 1 Introduction 5
- 2 Literature Review 8
- 3 Empirical Evidence 10
- 4 A Model with Disaster Risk 15
- 4.1 Ricardian Households 17
- 4.2 “Hand-to-Mouth” Households 19
- 4.3 Production Sectors 19
- 4.4 Central Bank, Government, and Market Clearing 20
- 4.5 Calibration and Solution Method 21
- 5 Numerical Simulation 22
- 5.1 Baseline Results 22
- 5.2 Targeted Transfers 25
- 5.3 Progressive Income Taxes 26
- 6 Conclusion 29
- References 30
- Figures 5
- 1: Total Number of Disaster Events from 1990–2024 5
- 2: Cyclically-Adjusted Balance as % of Potential GDP, Median of All Countries 6
- 3: Vulnerability Index 7
- 4: Impact of Climate Change Vulnerability on Public Debt 12
- 5: Impact of Climate Change Vulnerability on Household Income 13
- 6: Impact of Climate Change Vulnerability Between Low and High Vulnerability Risk 14
- 7: Impact of Climate Change Vulnerability for Countries with High Vulnerability and Sustainability Risk 15
- 8: The Impulse Response of 10% Increase in Disaster Risk 24
- 9: The Impulse Response of 10% Increase in Disaster Risk with Targeted Transfers to Poor People 26
- 10: The Impulse Response of 10% Increase in Disaster Risk with Progressive Income Taxes 28
- Tables 11
- 1: Description of Data 11
- 2: Calibration for Emerging Market Economies 22
