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Macro-Fiscal Implications of Climate Change: The Case of Djibouti

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  • Alexei P Kireyev

Abstract

This paper reviews the significant macro-fiscal challenges posed by climate change in Djibouti and the costs of mitigation and adaptation policies. The paper concludes that Djibouti is susceptible to climate change and related costs are potentially large. Investing now in adaptation and mitigation has large benefits in terms of reducing the related costs in the future. Reforms to generate the fiscal space are therefore needed and investment for mitigation and adaptation to climate change should be built into the long-term fiscal projections. Finally, concerted international efforts and stepping up regional cooperation could help moderate climate-related macro-fiscal risks.

Suggested Citation

  • Alexei P Kireyev, 2018. "Macro-Fiscal Implications of Climate Change: The Case of Djibouti," IMF Working Papers 18/233, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:18/233
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    Keywords

    Middle East; Inclusive growth; Djibouti; climate change; climate warming; General; Aggregate Factor Income Distribution; Measurement and Analysis of Poverty;

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