文献类型：期刊文献

英文题名：The Public Cost of Extreme Climate: Empirical Evidence from China's Chengtou Bonds

作者：Zhang, Hongxuan[1]; Yu, Qi[1]; Xu, Yankun[1,2]; Tao, Zibei[1]; Shao, Shuai[3]; Zhuang, Jingyi[1]

机构：[1] School of Public Finance and Taxation, Zhongnan University of Economics and Law, Wuhan, China; [2] School of Economics, Central South University for Nationalities, China; [3] School of Business, East China University of Science and Technology, Shanghai, China

年份：2023

外文期刊名：SSRN

收录：EI(收录号：20230456123)

语种：英文

外文关键词：Costs - Environmental protection - Meteorology - Sustainable development - Transparency

摘要：Extreme Climate can worsen the sustainability of government finance, and is a public cost that needs to be identified. In this paper, we estimate the impact of high temperature weather on the yield spreads of Chengtou bonds by matching China's bond-level data of Chengtou bonds with station-level meteorological data. We find that an increase in extremely high temperatures will result in a significant rise in the yield spreads of Chengtou bonds, and then increase the financing cost of Chengtou bonds. The result still holds true after a variety of robustness tests. Mechanism analysis indicates that the effect of extremely high temperatures is primarily caused by weakening the guarantee capacity of local governments and increasing the demand for local government financing through Chengtou bonds. Further analyses reveal that the improvement of investors' attention towards climate risks can notably influence the yield spreads of Chengtou bonds. Adaptation analysis shows that the increased investment of local government in environmental protection and green coverage rate of the built-up areas can significantly mitigate the impact of extremely high temperatures. We have also discovered that extremely high temperatures have a greater impact on Chengtou bonds issued in regions with lower fiscal transparency, lower marketization level, and lower guarantee willingness and ability of local government, as well as Chengtou bonds with longer issuance term, lower information transparency and higher debt repayment risks. Predictive analysis of future temperature changes indicates that there are considerable potential benefits from implementing mitigation and adaptation strategies on a global scale. ? 2023, The Authors. All rights reserved.