Arbeitspapier

Climate vulnerability and government resource mobilization in developing countries

There is substantial empirical literature on the impact of climate vulnerability on economic outcomes in developing countries. However, this literature is still weak on the impact of climate vulnerability on tax revenue mobilization. To enrich the existing literature, this paper aims to investigate the effects of climate vulnerability on government revenue mobilization in a sample of 84 developing countries over the period 1995-2019. To achieve this objective, we use the pooled ordinary least square and fixed-effects ordinary least square regressor techniques as developed by Driscoll and Kraay (1998). We obtain three main results. First, climate vulnerability hampers government revenue mobilization in developing countries. Indeed, a variation of 1 per cent in the level of climate vulnerability induces a decrease in government revenues of 0.63 points. Second, climate vulnerability has different impacts on each type of government tax revenue. Regarding the subcomponents of tax revenue (direct and indirect tax), the results confirm the harmful effect of climate vulnerability on all these subcomponents. Furthermore, it appears that direct taxes are the most compromised in terms of magnitude. Third, this effect does not change when climate vulnerability is disaggregated (exposure, sensitivity, and adaptive capacity). However, the climate sensitivity index has a significantly greater effect than the other two. Finally, by applying quantile regression and the two-step system generalized method of moments to control, respectively, distributional heterogeneity and the potential endogenous problem, we also find that climate vulnerability hampers government revenue mobilization in developing countries. These results suggest recommendations relative to the implementation of measures meant to improve the resilience of people to climate change and natural disasters.

ISBN
978-92-9267-286-7
Sprache
Englisch

Erschienen in
Series: WIDER Working Paper ; No. 2022/153

Klassifikation
Wirtschaft
Fiscal Policy
Taxation, Subsidies, and Revenue: General
Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
Climate; Natural Disasters and Their Management; Global Warming
Thema
climate vulnerability
developing countries
government revenue mobilization
natural disasters

Ereignis
Geistige Schöpfung
(wer)
Tsopmo, Pierre Christian
Foudjo, Suzie Imelda
Elanga, Michelle Josée Ekila
Ereignis
Veröffentlichung
(wer)
The United Nations University World Institute for Development Economics Research (UNU-WIDER)
(wo)
Helsinki
(wann)
2022

DOI
doi:10.35188/UNU-WIDER/2022/286-7
Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Tsopmo, Pierre Christian
  • Foudjo, Suzie Imelda
  • Elanga, Michelle Josée Ekila
  • The United Nations University World Institute for Development Economics Research (UNU-WIDER)

Entstanden

  • 2022

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