Journal Home
Login
Register
Open Access Journal
Submit a Paper
Propose a Special lssue
Open Access
ARTICLE
Climate Vulnerability, Economic Resilience, and Policy Adaptation in Developing Economies: An Integrative Analysis
Issue Vol. 2 No. 02 (2025): VOLUME 02 ISSUE 02 --- Section Articles
pdf
Abstract
Developing economies confront a complex interplay between climate change vulnerabilities, economic resilience, and policy adaptation strategies. This study critically examines the multidimensional challenges posed by environmental perturbations and their implications for sovereign debt, financial markets, and social inequalities. Drawing upon an extensive review of empirical and theoretical literature, the research integrates insights from climate science, economics, and policy analysis to illuminate the systemic risks inherent in climate-sensitive sectors. Particular attention is given to the disproportionate effects on developing countries, where infrastructural limitations, financial fragility, and socio-political constraints exacerbate vulnerability (Ravindranath & Sathaye, 2002). The study systematically explores the mechanisms by which climate-induced shocks translate into economic stress, including increased sovereign borrowing costs, market volatility, and disrupted trade flows (Beirne et al., 2021; Boitan & Marchewka-Bartkowiak, 2022). Furthermore, it evaluates the efficacy of adaptation strategies and mitigation policies in enhancing resilience, with a focus on both governmental and non-governmental interventions, including health valuation frameworks (Organization WH, 2023) and technological innovations in energy and carbon footprint reduction (Rees & Wackernagel, 2023; Pasek et al., 2023). The research synthesizes current debates on climate finance, policy design, and international negotiation dynamics, underscoring the tensions between equity, economic efficiency, and environmental sustainability (Schroeder, 2010; Lange et al., 2010). Ultimately, the article advances a conceptual framework for integrating environmental, social, and economic dimensions into coherent policy responses, highlighting avenues for future research and cross-sectoral collaboration.
Keywords
References
1. Aizenman, Joshua, Donghyun Park, Irfan Qureshi, Jamel Saadaoui, and Gazi Uddin. 2024. “The Performance of Emerging Markets During the Fed’s Easing and Tightening Cycles: A Cross-Country Resilience Analysis.” Journal of International Money and Finance 103169.
2. Schroeder H. 2010. Agency in international climate negotiations: the case of indigenous peoples and avoided deforestation. International Environmental Agreements: Politics, Law and Economics. 10:317-32.
3. Boitan, Iustina, and Kamilla Marchewka-Bartkowiak. 2022. “Climate Change and the Pricing of Sovereign Debt: Insights from European Markets.” Research in International Business and Finance 62: 101685.
4. Rees WE, Wackernagel M. 2023. Ecological footprint accounting: Thirty years and still gathering steam. Environment: Science and Policy for Sustainable Development. 65(5):5-18.
5. Aizenman, Joshua, Menzie David Chinn, and Hiro Ito. 2013. “The ‘Impossible Trinity’ Hypothesis in an Era of Global Imbalances: Measurement and Testing.” Review of International Economics 21(3): 447–58.
6. Cappelli, Federica, Valeria Costantini, and Davide Consoli. 2021. “The Trap of Climate Change-Induced ‘natural’ Disasters and Inequality.” Global Environmental Change 70: 102329.
7. Organization WH. 2023. A framework for the quantification and economic valuation of health outcomes originating from health and non-health climate change mitigation and adaptation action: World Health Organization.
8. Pasek A, Vaughan H, Starosielski N. 2023. The world wide web of carbon: Toward a relational footprinting of information and communications technology's climate impacts. Big Data & Society. 10(1):20539517231158994.
9. Ravindranath NH, Sathaye JA. 2002. Climate Change and Developing Countries. Climate Change and Developing Countries. Dordrecht: Springer Netherlands; p. 247-65.
10. Carattini, Stefano, Garth Heutel, and Givi Melkadze. 2023. “Climate Policy, Financial Frictions, and Transition Risk.” Review of Economic Dynamics 51: 778–94.
11. Śledzik K. 2013. Schumpeter’s view on innovation and entrepreneurship. Management Trends in Theory and Practice, Faculty of Management Science and Informatics, University of Zilina & Institute of Management by University of Zilina.
12. Lange A, Löschel A, Vogt C, Ziegler A. 2010. On the self-interested use of
