 Financial Crises and Climate ChangeComparative Economic Studies, 2024, vol. 66, issue 1, No 5, 166-190 Abstract: Abstract Climate change is a big challenge of our time. While there is a bourgeoning literature on the economic impact of climate change, research on how financial crises affect climate change is limited. We empirically use the local projection method to empirically study the impact of past financial crises on climate change vulnerability and resilience indices. Using a dataset covering 178 countries over the period 1995–2019, we observe that resilience to climate change shocks has been increasing and that advanced economies are the least vulnerable. Our econometric results suggest that financial crises (particularly systematic banking ones) tend to lead to a short-run deterioration in a country’s resilience to climate change. This effect is more pronounced in developing economies. In downturns, if an economy is hit by a financial crisis, vulnerability to climate change increases. Keywords: Climate change; Vulnerability; Resilience; Local projection method; Impulse response functions; Recessions; Financial crises (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:compes:v:66:y:2024:i:1:d:10.1057_s41294-023-00209-7 Ordering information: This journal article can be ordered from DOI: 10.1057/s41294-023-00209-7 Access Statistics for this article Comparative Economic Studies is currently edited by Nauro Campos More articles in Comparative Economic Studies from Palgrave Macmillan, Association for Comparative Economic Studies Contact information at EDIRC. |
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