An Apocalypse Foretold: Climate Shocks and Sovereign Defaults

Climate change poses an existential threat to the global economy. While there is a growing body of literature on economic consequences climate change, research link between and sovereign default risk nonexistent. We aim fill this gap in by estimating impact vulnerability resilience probability debt default. Using sample 116 countries over period 1995–2017, we find that have significant effects default, especially among low-income countries. That is, with greater face higher likelihood compared more resilient These findings remain robust battery sensitivity checks, including alternative measures model specifications, estimation methodologies.