Asia's Fiscal Future: Unveiling the Climate Vulnerability and Readiness Impact on Public Debt and Income Inequality/

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.