For Whom the Bell Tolls: Climate Change and Inequality
IMF Working Papers, May 27, 2022
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- For Whom the Bell Tolls: Climate Change and Inequality
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Bibliographic details
- Authors: Serhan Cevik, João Tovar Jalles
- Published: May 27, 2022
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400208126.001
Summary
- Climate change is described as "the defining challenge of our time with complex and evolving dynamics."
- The paper provides new evidence on the association between climate change and income inequality using a large panel of 158 countries during the period 1955–2019.
- Main empirical finding: an increase in climate change vulnerability is positively associated with rising income inequality.
- Heterogeneity: climate change vulnerability has no statistically significant effect on income distribution in advanced economies, while the coefficient on climate change vulnerability is seven times greater and statistically highly significant in the case of developing countries.
Key findings and statistics
- Sample size and period: 158 countries, 1955–2019.
- Main association: increase in climate change vulnerability → positive association with rising income inequality.
- Heterogeneous effect: coefficient on climate change vulnerability is seven times greater in developing countries compared with advanced economies.
- Pages: 27.
- Volume: 2022.
- Issue: 103.
- Series: Working Paper No. 2022/103.
- DOI: https://doi.org/10.5089/9798400208126.001.
- Stock No: WPIEA2022103.
- ISBN: 9798400208126.
- ISSN: 1018-5941.
Interpretation of heterogeneity
- Advanced economies: no statistically significant effect of climate change vulnerability on income distribution.
- Developing countries: large and statistically highly significant effect, attributed largely to weaker capacity for climate change adaptation and mitigation.
Policy implications and emphasis
- The disproportionate impact on developing countries highlights the importance of strengthening capacity for climate change adaptation and mitigation to address climate-driven increases in income inequality.
- Addressing climate vulnerability is linked not only to output and financial stability but also to distributional outcomes (income distribution and income inequality).
IMF Working Papers — "For Whom the Bell Tolls: Climate Change and Inequality", Serhan Cevik and João Tovar Jalles, May 27, 2022.
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