Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
Please note that all times are shown in the time zone of the conference. The current conference time is: 10th Sept 2026, 07:05:41pm CEST (Norway)
External resources will be made available 30 min before a session starts. You may have to reload the page to access the resources.
|
Daily Overview |
| Session | |
|
Climate anomalies, policy responses, and global environmental insights Location: Auditorium O: Terje Hansen Session Chair: Luca Panzone, luca.panzone@newcastle.ac.uk | |
    | |
Fiscal Impacts of Climate Anomalies 1: Ca' Foscari University of Venice & CRIEP; 2: University of Groningen, CAMA and CIRANO; 3: University of Groningen and CESifo The negative effects of climate change on output and productivity have been well documented in recent years. However, its impact on public finances has received little attention. This paper attempts to fill this gap by analysing the impact of climate anomalies on fiscal variables in a macroeconometric framework that also takes into account economic activity. We exploit natural weather variations to construct temperature and precipitation shocks in a panel of 14 European countries and the United States. Impulse response functions from a structural Bayesian Panel VAR show that adverse climate shocks are contractionary and significantly increase public debt and deficits over a business cycle horizon. However, the inflationary impact and the persistence of temperature and precipitation shocks are quite different. The negative fiscal and economic consequences of temperature anomalies are remarkably stronger for warmer, climate-vulnerable and highly indebted countries. Further analysis suggests that the main transmission mechanisms of the reported fiscal impacts are significantly lower tax revenues combined with an increase in government spending on public subsidies. | |