Climate Change Brings Stormy Days: Case Studies on the Impact of Extreme Weather Events on Public Finances

Heipertz, Martin; Nickel, Christiane

doi:10.2139/ssrn.1997256

Cited by 16 publications

(28 citation statements)

References 5 publications

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“…These variables are growing degree days (GDD) as described above as well as heating and cooling degree days (HDD and CDD, respectively). GDD variable is calculated as the sum of daily average temperatures between 8 and 32 • C and truncated to 32 • C during the growing season of April to August (similarly to Deschênes and Greenstone 2007;Guiteras 2009). HDD and CDD on the other hand are calculated as annual sum of daily average outdoor temperature differences to indoor comfort temperature of 18.3 • C (65 • F) following EPA (2014).…”

Section: Regional Climate Datamentioning

confidence: 99%

The Impact of Climate Change on Regional Government Expenditures: Evidence from Russia

Leppänen

Solanko

Kosonen

2015

Environ Resource Econ

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This paper explores an almost untouched topic in the fast-growing climate econometrics literature-the implications of climate change for government expenditures. Using a rich sub-national dataset for Russia covering 1995-2009, we estimate the impacts of changes in climatic conditions through short-term variation and medium-term changes in average regional temperatures and precipitation. We show a strong and robust negative (but nonlinear) relation between regional budget expenditures and population-weighted temperature. The results indicate that an increase in temperature results in a decrease in public expenditures and that the magnitude of this effect diminishes the warmer the region. Further, our results suggest that the benefits from warming accumulate and that adaptation measures could help leverage those benefits. The estimated decreases in regional government expenditure are, however, quite small. In mild warming scenarios, according to our estimates Russia saves roughly USD 3-4 billion in regional government expenditures between 2000 and the 2020s without undertaking adaptation measures, depending on the scenario. It should be noted that our results are estimated for a scenario of mild temperature increase (1-2 • C). Larger tem- perature increases are likely to have dramatic consequences e.g. from loss of permafrost and methane release that are impossible to predict with available historical data.

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Section: Regional Climate Datamentioning

confidence: 99%

The Impact of Climate Change on Regional Government Expenditures: Evidence from Russia

Leppänen

Solanko

Kosonen

2015

Environ Resource Econ

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“…Hence, for the analysis in this paper this suggests that there is a fiscal indirect impact caused by this drop in output growth. Moreover, a few papers explore the fiscal impact of natural disasters on the basis of case studies (Heipertz and Nickel 2008;Benson and Clay 2004). Heipertz and Nickel (2008) conclude that the total effect (including the direct and indirect impact) of extreme weather events on public finances varied between 0.3% to 1.1% of GDP.…”

Section: Literature Overview and Motivationmentioning

confidence: 99%

“…Moreover, a few papers explore the fiscal impact of natural disasters on the basis of case studies (Heipertz and Nickel 2008;Benson and Clay 2004). Heipertz and Nickel (2008) conclude that the total effect (including the direct and indirect impact) of extreme weather events on public finances varied between 0.3% to 1.1% of GDP. Schuknecht (1999) estimates a fixed effects model for 25 developing countries to study whether countries with different exchange rate regimes engage differently in expansionary fiscal policies around elections.…”

Section: Literature Overview and Motivationmentioning

confidence: 99%

“…He finds a strongly significant negative effect of catastrophes on fiscal balances (Schuknecht 1999). 3 Furthermore, several papers discuss the implications of natural disasters for fiscal policies (IMF 2008b;Wildasin 2007), yet, except for the papers by Schuknecht (1999) and Heipertz and Nickel (2008), none of them conducts an ex post analysis.…”

Section: Literature Overview and Motivationmentioning

confidence: 99%

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The impact of extreme weather events on budget balances

Lis

Nickel

2010

Int Tax Public Finance

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“…Fiscal pressure may be compounded by a temporary fall in revenues in the aftermath of a disaster and by the risk of moral hazard if private actors rely on public emergency coverage (Heipertz and Nickel 2008).…”

Section: Macroeconomic Stabilitymentioning

confidence: 99%

Climate change, adaptation and economic growth

2011

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This paper explores the links between economic growth and the impacts of climate change. Inclusive, pro-poor growth is central to the development of low-income countries. There is also a broad consensus that growth and development are important to reduce vulnerability to climate change. Growth does not automatically reduce vulnerability, only the right kind of growth does. The paper aims to develop a better understanding of what the "right kind of growth" may be. We find that many growth policies, such as investment in skills and access to finance, indeed reduce vulnerability to climate change. However, climate change calls for some adjustments in growth policy. In particular, investment in infrastructure and efforts to stimulate entrepreneurship and competitive markets must take more of a risk management perspective and recognise climate risks.

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Climate Change Brings Stormy Days: Case Studies on the Impact of Extreme Weather Events on Public Finances

Cited by 16 publications

References 5 publications

The Impact of Climate Change on Regional Government Expenditures: Evidence from Russia

The Impact of Climate Change on Regional Government Expenditures: Evidence from Russia

The impact of extreme weather events on budget balances

Climate change, adaptation and economic growth

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