Research Insights: How Do Climate Change-Induced Hurricanes Affect Sovereign Debt in the Caribbean?

A survey of relevant literature identifies a direct link between anthropogenic climate change and increased hurricane intensity, notably through a 10% increase in rainfall and associated damages. Caribbean countries are particularly vulnerable, as severe hurricanes lead to notable increases in public debt, compounded by climate change impacts. The study underscores the urgency of integrating climate change considerations into economic and fiscal policies because the impact of climate change is pronounced and immediate.