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An Apocalypse Foretold : Climate Shocks and Sovereign Defaults

Cevik, Serhan; Jalles, João Tovar - 2021

measures of sovereign debt default, model specifications, and estimation methodologies …

Persistent link: https://www.econbiz.de/10013252051

Bolton, Patrick; Buchheit, Lee C.; Gulati, Mitu; … - In: Oxford open economics 2 (2023), pp. 1-6

This article discusses the links between climate and debt sustainability by focusing on how climate mitigation and adaptation are paid for, and who pays for it. This requires thinking about instruments such as sovereign bonds, carbon credits, conditional official grants and debt relief from both...

Persistent link: https://www.econbiz.de/10014492279

Climate Change Transition Risk on Sovereign Bond Markets

Collender, Sierra; Sklibosios Nikitopoulos, Christina; … - 2021

We challenge the narrative that climate change transition risk is not being priced into sovereign bond markets. Climate …, are factored into sovereign bond yields (and spreads) by investors. Using a sample of data from 23 advanced and 16 … in the significance of transition risk factors as determinants of sovereign bond yields …

Persistent link: https://www.econbiz.de/10013224528

Asymmetric sovereign risk : implications for climate change preparation

Gómez González, José Eduardo; Uribe, Jorge; … - 2024

Climate change adaptation efforts are heavily dependent on a country's fiscal capacity and the associated costs of undertaking adaptation policies. The current accumulation of high debt levels in emerging and low-income developing countries, which are disproportionately affected by climate...

Persistent link: https://www.econbiz.de/10014529900

Sovereign Default Risk and Climate Change : Is it Hot Enough ?

Diarra, Ibrahima; Jaber, Adham - 2022

) premium. Building on an equilibrium bond pricing equation, we document the existence of a “debt limit channel” of temperature …

Persistent link: https://www.econbiz.de/10013492460

Climate Defaults and Financial Adaptation

Phan, Toan; Schwartzman, Felipe F. - 2023

We analyze the relationship between climate-related disasters and sovereign debt crises using a model with capital accumulation, sovereign default, and disaster risk. We find that disaster risk and default risk together lead to slow post-disaster recovery and heightened borrowing costs....

Persistent link: https://www.econbiz.de/10014357256

Stress Testing the Global Economy to Climate Change-Related Shocks in Large and Interconnected Economies

Jung, Yeu Jin; Tovar, Camilo E.; Wu, Yiqun; Zheng, Tianxiao - 2022

We stress test the global economy to extreme climate change-related shocks on large and interconnected economies. Our analysis (i) identifies large and interconnected economies vulnerable to climate change-related shocks; (ii) estimates these economies’ external financing needs-at-risk due to...

Persistent link: https://www.econbiz.de/10014244523

Decoding climate-related risks in sovereign bond pricing : a global perspective

Anyfantaki, Sofia; Grimaldi, Marianna; Madeira, Carlos; … - 2025

Climate change poses a major risk to financial stability by affecting sovereign credit risk through transition and physical risks. Using data from 52 developed and developing countries over two decades, the study finds that transition risk leads to higher sovereign yields, especially in...

Persistent link: https://www.econbiz.de/10015424096

This Changes Everything : Climate Shocks and Sovereign Bonds

Cevik, Serhan - 2020

therefore investigates the impact of climate change vulnerability and resilience on sovereign bond yields and spreads in 98 … risk. That is, countries that are more resilient to climate change have lower bond yields and spreads relative to countries …

Persistent link: https://www.econbiz.de/10012828232

Impact of climate risk on fiscal space : do political stability and financial development matter?

Beirne, John; Park, Donghyun; Saadaoui, Jamel; Uddin, … - 2024

We analyze the relationship between climate risk and fiscal space in a systematic and rigorous way. To do so, we use panel local projections to examine the role of political stability and financial development in the relationship. For a sample of 199 economies in 1990-2022, we first empirically...

Persistent link: https://www.econbiz.de/10015133101