On Debt and Climate

6 Pages Posted: 5 Oct 2023

See all articles by Patrick Bolton

Patrick Bolton

Imperial College London; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI)

Lee C. Buchheit

Center for Contract and Economic Organization

Mitu Gulati

University of Virginia School of Law

Ugo Panizza

Graduate Institute of International and Development Studies (IHEID) - Department of Economics; CEPR

Beatrice Weder di Mauro

University of Geneva - Graduate Institute, Geneva (IHEID); INSEAD; Centre for Economic Policy Research (CEPR)

Jeromin Zettelmeyer

Bruegel; Centre for Economic Policy Research (CEPR)

Date Written: October 5, 2023

Abstract

This article discusses the links between climate and debt sustainability by focusing on how climate mitigation and adaptation are paid for, and who pays for it. This requires thinking about instruments such as sovereign bonds, carbon credits, conditional official grants and debt relief from both public and private sources. The article discusses the role of green bonds, carbon offsets, grants and debt relief. Among these solutions, no single instrument appears to be right for all countries or at all times. To move forward, we make six proposals and policy recommendations that can jointly address climate change and debt sustainability.

Note:

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Keywords: climate change, debt sustainability, debt relief, carbon offsets, green bonds

JEL Classification: F34, F63, H63, K32

Suggested Citation

Bolton, Patrick and Buchheit, Lee C. and Gulati, Mitu and Panizza, Ugo and Weder di Mauro, Beatrice and Zettelmeyer, Jeromin, On Debt and Climate (October 5, 2023). Oxford Open Economics, 2023, 2, 1-6, Virginia Public Law and Legal Theory Research Paper No. 2023-66, Virginia Law and Economics Research Paper No. 2023-17, Available at SSRN: https://ssrn.com/abstract=4592936

Patrick Bolton

Imperial College London ( email )

South Kensington Campus
Exhibition Road
London, Greater London SW7 2AZ
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

European Corporate Governance Institute (ECGI)

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

HOME PAGE: http://www.ecgi.org

Lee C. Buchheit

Center for Contract and Economic Organization ( email )

New York, NY

Mitu Gulati

University of Virginia School of Law ( email )

580 Massie Road
Charlottesville, VA 22903
United States

Ugo Panizza (Contact Author)

Graduate Institute of International and Development Studies (IHEID) - Department of Economics ( email )

Geneva Avenue de la Paix 11A
Geneva, 1202
Switzerland

CEPR

London
United Kingdom

Beatrice Weder di Mauro

University of Geneva - Graduate Institute, Geneva (IHEID) ( email )

Geneva
Switzerland

INSEAD ( email )

Boulevard de Constance
77305 Fontainebleau Cedex
France

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Jeromin Zettelmeyer

Bruegel ( email )

Rue de la Charité 33
B-1210 Brussels Belgium, 1210
Belgium

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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