Sovereign bond yields affected by weather disasters – BIS paper
Countries with higher per capita carbon emissions also face greater borrowing costs
Government borrowing costs are affected by the severity and frequency of weather disasters, as well as the exposure of the local economy to climate transition risks, new research finds.
A Bank for International Settlements working paper published on July 8 explores how sovereign bond yields in 52 countries respond to the physical and transition risks posed by climate change.
The researchers find acute weather shocks contribute to higher bond yields. Carbon emissions per capita, a widely used
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