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Promised Fiscal Expansions and Politics: A European Union Assessment.

Comparative economic studies·2020
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Author Spotlight: Advancing Coral Culture - Creating a Semi-Quantitatively Controlled Microenvironment System to Counter Current Limitations
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Financial Crises and Climate Change.

João Tovar Jalles1,2,3,4

  • 1Instituto Superior de Economia e Gestão (ISEG), Universidade de Lisboa, Rua do Quelhas 6, 1200-781 Lisboa, Portugal.

Comparative Economic Studies
|June 26, 2023
PubMed
Summary
This summary is machine-generated.

Financial crises worsen climate change resilience, especially in developing nations. While global resilience is increasing, economic downturns heighten climate vulnerability.

Keywords:
Climate changeFinancial crisesImpulse response functionsLocal projection methodRecessionsResilienceVulnerability

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Area of Science:

  • Environmental Science
  • Economics
  • Climate Change Research

Background:

  • Climate change presents significant global challenges.
  • Existing research extensively covers the economic impacts of climate change.
  • Limited studies explore the reciprocal relationship between financial crises and climate change.

Purpose of the Study:

  • To empirically investigate the impact of financial crises on climate change vulnerability and resilience.
  • To analyze how economic downturns influence a nation's capacity to withstand climate shocks.

Main Methods:

  • Utilized the local projection method for empirical analysis.
  • Employed a dataset spanning 178 countries from 1995 to 2019.
  • Examined climate change vulnerability and resilience indices.

Main Results:

  • Global resilience to climate change shocks has shown an increasing trend.
  • Advanced economies exhibit the lowest vulnerability to climate change.
  • Financial crises, particularly systematic banking crises, cause a short-term decline in climate resilience.
  • This negative impact is more severe in developing economies.

Conclusions:

  • Financial crises can temporarily undermine a country's resilience to climate change.
  • Developing economies are disproportionately affected by the interplay of financial instability and climate vulnerability.
  • Economic downturns exacerbate climate change risks, increasing vulnerability.