A survey of empirical research on the fiscal implications of natural disasters

While the costs related to population ageing are seen as major drivers of fiscal pressure in developed countries, including the EU, concerns about climate-related public spending and natural disasters have received relatively little attention in ensuring long-term fiscal sustainability in these countries. This paper aims to contribute to a better understanding of the budgetary dimensions of natural disasters by empirically assessing their impact on the sustainability of public budgets and sustainable public debts. The so-called second-round effects resulting from governments' increasing efforts aimed at greenhouse gas reduction and adaptation are likely to further increase fiscal costs.