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Understanding how disasters shape incentives for climate action is central for the low-carbon transition. In this paper the authors ask: do climate-related disasters accelerate mitigation policy or can they slow it down?

The authors develop a political-economy model in which disasters simultaneously (i) raise the perceived returns to mitigation by increasing the salience of climate risk, and (ii) tighten fiscal constraints through damages and triggering reconstruction.

The model reveals what the authors describe as an ‘attention–policy translation failure’: disasters raise concern about climate risks and boost demand for action, yet they can end up reducing mitigation efforts, particularly when severe. Severe shocks squeeze public finances hard, making it more expensive to act, while the additional payoff from further cutting risk starts to shrink once the danger already feels real. This shortfall in mitigation policy can persist for a decade through capital dynamics.

This mechanism is illustrated using the 1990 Western European windstorm, during which highly exposed countries showed rising public concern alongside a relative slowdown in mitigation legislation over the subsequent decade, consistent with the model’s ‘defocusing’ channel.

Key points for decision-makers

  • A central question for the political economy of climate policy is whether disasters act as a wake-up call that accelerates greenhouse gas mitigation activity or instead shift priorities and constrain resources in ways that slow it down.
  • This paper argues that the answer depends on the difference between how disasters shift public beliefs and how they shift policy output. The authors call this gap the attention–policy translation failure and develop a model that explains when and why it arises.
  • They show that although disasters increase public attention to climate risk, this does not reliably translate into sustained mitigation policy.
  • Even large shocks may fail to produce meaningful long-run reductions in climate risk, highlighting a key limitation of relying on disasters to spur policy action.
  • The mechanism operates through two opposing forces. A disaster raises the perceived probability of future climate risk, generating electoral demand for mitigation. At the same time, post-disaster periods are dominated by reconstruction and crisis management, which tightens fiscal constraints and raises the opportunity cost of mitigation precisely when it appears most urgent.

This working paper was originally published in April 2026 and was updated in July 2026.

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