Abstract:
This thesis investigates how climate vulnerability and readiness impacts public debt and income
inequality in Asia. Although a large body of research has examined how climate change affects key
macroeconomic variables, little of it focuses on how climate readiness and vulnerability affect public
debt and income inequality in Asia. Panel data from 22 Asian nations covering the years 1995–2021
has been used in this study. The overall impact of climate vulnerability on public debt and income
inequality is investigated by using many econometric methodologies. The Random Effect Model is
applied to the models of public debt and income inequality, and it is validated using the Hausman test.
The findings show that public debt is significantly impacted by climate vulnerability and readiness,
whereas income inequality is significantly impacted by climate vulnerability. Nonetheless, our results
suggests that readiness is not really important. As a result, the results highlight the significance of
focused strategies to lessen the effects of climate vulnerability, which will ultimately lower public debt
and economic disparity in Asia.
