Natural Capital and Sovereign Bonds
Natural capital is related to government bonds through the macroeconomy and credit risks. This paper estimates this relationship from the long-term, between-country view and the short-term, within-country view. The paper cautions against the former...
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World Bank, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/en/628001617289818802/Natural-Capital-and-Sovereign-Bonds http://hdl.handle.net/10986/35401 |
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okr-10986-354012022-09-20T00:09:10Z Natural Capital and Sovereign Bonds Wang, Dieter NATURAL CAPITAL NATURAL RESOURCE MANAGEMENT SOVEREIGN BOND YIELD INGRAINED INCOME BIAS INTERACTIVE FIXED EFFECT LATENT COMMON BOND FACTORS GREENHOUSE GAS EMISSIONS RENEWABLE RESOURCES Natural capital is related to government bonds through the macroeconomy and credit risks. This paper estimates this relationship from the long-term, between-country view and the short-term, within-country view. The paper cautions against the former, as it is dominated by income differences. These are de facto ingrained, as they cannot be overcome by short-term policy efforts. The within-country view is unaffected by the ingrained income bias and leaves room for recent natural capital changes to affect bond yields. The paper finds that non-renewables (fossil fuels and mineral assets) raise bond yields, possibly due to the resource curse. Renewables (forests and agricultural wealth) lower borrowing costs because they are economically worthwhile investments. Protected areas are more likely to be luxury investments. 2021-04-08T15:43:06Z 2021-04-08T15:43:06Z 2021-04 Working Paper http://documents.worldbank.org/curated/en/628001617289818802/Natural-Capital-and-Sovereign-Bonds http://hdl.handle.net/10986/35401 English Policy Research Working Paper;No. 9606 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
NATURAL CAPITAL NATURAL RESOURCE MANAGEMENT SOVEREIGN BOND YIELD INGRAINED INCOME BIAS INTERACTIVE FIXED EFFECT LATENT COMMON BOND FACTORS GREENHOUSE GAS EMISSIONS RENEWABLE RESOURCES |
| spellingShingle |
NATURAL CAPITAL NATURAL RESOURCE MANAGEMENT SOVEREIGN BOND YIELD INGRAINED INCOME BIAS INTERACTIVE FIXED EFFECT LATENT COMMON BOND FACTORS GREENHOUSE GAS EMISSIONS RENEWABLE RESOURCES Wang, Dieter Natural Capital and Sovereign Bonds |
| relation |
Policy Research Working Paper;No. 9606 |
| description |
Natural capital is related to government
bonds through the macroeconomy and credit risks. This paper
estimates this relationship from the long-term,
between-country view and the short-term, within-country
view. The paper cautions against the former, as it is
dominated by income differences. These are de facto
ingrained, as they cannot be overcome by short-term policy
efforts. The within-country view is unaffected by the
ingrained income bias and leaves room for recent natural
capital changes to affect bond yields. The paper finds that
non-renewables (fossil fuels and mineral assets) raise bond
yields, possibly due to the resource curse. Renewables
(forests and agricultural wealth) lower borrowing costs
because they are economically worthwhile investments.
Protected areas are more likely to be luxury investments. |
| format |
Working Paper |
| author |
Wang, Dieter |
| author_facet |
Wang, Dieter |
| author_sort |
Wang, Dieter |
| title |
Natural Capital and Sovereign Bonds |
| title_short |
Natural Capital and Sovereign Bonds |
| title_full |
Natural Capital and Sovereign Bonds |
| title_fullStr |
Natural Capital and Sovereign Bonds |
| title_full_unstemmed |
Natural Capital and Sovereign Bonds |
| title_sort |
natural capital and sovereign bonds |
| publisher |
World Bank, Washington, DC |
| publishDate |
2021 |
| url |
http://documents.worldbank.org/curated/en/628001617289818802/Natural-Capital-and-Sovereign-Bonds http://hdl.handle.net/10986/35401 |
| _version_ |
1764482950643056640 |