Public finances and climate change (project)

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Public finances and climate change

Client/Funding Institution

Anniversary Fund of the Oesterreichische Nationalbank

Abstract

Against the background of predictions by climate scientists that temperatures and related extreme weather events will continue to increase in the coming decades, the interest of academics and policy makers in understanding the complex economic effects of climate change has grown. Events such as the flooding in mid-September 2024 after the heaviest rain in decades in Central and Eastern Europe emphasise the threat posed by extreme weather events. However, research on the complex nexus between climate change and public finances remains relatively underdeveloped, with comparatively little research on the consequences for different dimensions of public finances, including debt sustainability and sovereign risk. This project aims to close existing gaps in the literature by providing new theoretical and empirical contributions that allow for a better understanding of the nexus between climate change and public finances in Europe and beyond.

Funded by the Anniversary Fund of the Oesterreichische Nationalbank (Project No. 19057).