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Climate Disasters and Intergenerational Equity: A Fiscal Rule for Sustainable Development -- by Harrison Hong, Heqing Huang, Neng Wang
Researchers Harrison Hong, Heqing Huang, and Neng Wang present an economic model examining how governments can address intergenerational equity risks posed by climate disasters through state-contingent fiscal rules. The model proposes that when perceived disaster risk is high, governments should raise consumption taxes to finance resilience investment subsidies, aligning with UN Sustainable Development Goals principles. The study finds this sustainability-constraint approach improves asset valua