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Unburnable Wealth of Nations
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Unburnable Wealth of Nations

Successful action to address climate change would diminish the value of fossil fuel resources in many of the world’s poorest countries

James Cust, David Manley and Giorgia Cecchinato
Finance & Development Magazine, 2017
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Recommendation

The effects of climate change hurt developing countries disproportionately – but so do the policies that seek to curb the rise in global temperatures. Developing countries that rely on their fossil fuel wealth will suffer badly. In this article from the International Monetary Fund’s Finance and Development magazine, three economists from the World Bank and the United Kingdom’s Natural Resource Governance Institute shed light on a rarely discussed consequence of successful climate change action. getAbstract recommends their analysis to development experts and policy makers.

Take-Aways

  • International fossil fuel consumption is declining.
  • Consequently, developing countries whose economies strongly depend on their fossil fuel wealth will see a sharp drop in government revenue.
  • Fossil fuel–rich developing countries tend to be heavily invested in the fossil fuel industry through national oil companies.

About the Authors

James Cust works in the World Bank’s Office of the Chief Economist for Africa. David Manley is a senior economic analyst and Giorgia Cecchinato a data associate at the United Kingdom’s Natural Resource Governance Institute.

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