IMF Working Papers

Macro-Fiscal Implications of Climate Change: The Case of Djibouti

By Alexei P Kireyev

November 1, 2018

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Alexei P Kireyev. Macro-Fiscal Implications of Climate Change: The Case of Djibouti, (USA: International Monetary Fund, 2018) accessed December 12, 2024

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Summary

This paper reviews the significant macro-fiscal challenges posed by climate change in Djibouti and the costs of mitigation and adaptation policies. The paper concludes that Djibouti is susceptible to climate change and related costs are potentially large. Investing now in adaptation and mitigation has large benefits in terms of reducing the related costs in the future. Reforms to generate the fiscal space are therefore needed and investment for mitigation and adaptation to climate change should be built into the long-term fiscal projections. Finally, concerted international efforts and stepping up regional cooperation could help moderate climate-related macro-fiscal risks.

Subject: Climate change, Climate finance, Environment, Fiscal policy, Fiscal space, Natural disasters, Population and demographics, Renewable energy

Keywords: Africa, Climate adaptation investment, Climate change, Climate change challenge, Climate change mitigation, Climate finance, Climate warming, Cost, Djibouti, Fiscal space, GDP, Global, Government, Inclusive growth, Mitigation effort, Natural disasters, Production capacity, Renewable energy, Visions Djibouti, World Bank climate change knowledge portal, WP

Publication Details

  • Pages:

    30

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2018/233

  • Stock No:

    WPIEA2018233

  • ISBN:

    9781484380819

  • ISSN:

    1018-5941