Could climate change affect government expenditures? Early evidence from the Russian regions
This paper explores 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 pre...
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Helsinki: Bank of Finland, Institute for Economies in Transition (BOFIT)
2015
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ftzbwkiel:oai:econstor.eu:10419/212837 2023-12-03T10:28:57+01:00 Could climate change affect government expenditures? Early evidence from the Russian regions Leppänen, Simo Solanko, Laura Kosonen, Riitta 2015 http://hdl.handle.net/10419/212837 eng eng Helsinki: Bank of Finland, Institute for Economies in Transition (BOFIT) Series: BOFIT Discussion Papers No. 27/2015 urn:isbn:978-952-323-066-8 gbv-ppn:83621692X URN:NBN:fi:bof-201509301407 http://hdl.handle.net/10419/212837 RePEc:zbw:bofitp:bdp2015_027 http://www.econstor.eu/dspace/Nutzungsbedingungen ddc:330 Q54 Q58 H72 R59 C50 P20 doc-type:workingPaper 2015 ftzbwkiel 2023-11-06T00:41:56Z This paper explores 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 non-linear) 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. It should be noted that our results are estimated for a scenario of mild temperature increase (1–2 °C). Larger temperature 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. Report permafrost EconStor (German National Library of Economics, ZBW) |
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EconStor (German National Library of Economics, ZBW) |
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English |
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ddc:330 Q54 Q58 H72 R59 C50 P20 |
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ddc:330 Q54 Q58 H72 R59 C50 P20 Leppänen, Simo Solanko, Laura Kosonen, Riitta Could climate change affect government expenditures? Early evidence from the Russian regions |
topic_facet |
ddc:330 Q54 Q58 H72 R59 C50 P20 |
description |
This paper explores 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 non-linear) 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. It should be noted that our results are estimated for a scenario of mild temperature increase (1–2 °C). Larger temperature 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. |
format |
Report |
author |
Leppänen, Simo Solanko, Laura Kosonen, Riitta |
author_facet |
Leppänen, Simo Solanko, Laura Kosonen, Riitta |
author_sort |
Leppänen, Simo |
title |
Could climate change affect government expenditures? Early evidence from the Russian regions |
title_short |
Could climate change affect government expenditures? Early evidence from the Russian regions |
title_full |
Could climate change affect government expenditures? Early evidence from the Russian regions |
title_fullStr |
Could climate change affect government expenditures? Early evidence from the Russian regions |
title_full_unstemmed |
Could climate change affect government expenditures? Early evidence from the Russian regions |
title_sort |
could climate change affect government expenditures? early evidence from the russian regions |
publisher |
Helsinki: Bank of Finland, Institute for Economies in Transition (BOFIT) |
publishDate |
2015 |
url |
http://hdl.handle.net/10419/212837 |
genre |
permafrost |
genre_facet |
permafrost |
op_relation |
Series: BOFIT Discussion Papers No. 27/2015 urn:isbn:978-952-323-066-8 gbv-ppn:83621692X URN:NBN:fi:bof-201509301407 http://hdl.handle.net/10419/212837 RePEc:zbw:bofitp:bdp2015_027 |
op_rights |
http://www.econstor.eu/dspace/Nutzungsbedingungen |
_version_ |
1784253983031820288 |