Government Bond Markets See Ecological Decline as a Growth Problem

Summary Teaser: In new research, Jitendra Aswani and William W. Xiong show that countries facing greater risks to their natural assets, from overfishing to deforestation, pay more to borrow, as investors discount their long-run growth prospects. Governments can reduce that premium by implementing green projects that address the risks they actually face, but announcing an intention to do so is not…