Climate change mitigation policies and poverty in developing countries

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Climate change mitigation policies and poverty in developing countries
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Mitigation of the potential impacts of climate change is one of the leading policy concerns of the 21st century. However, there continues to be heated debate about the nature, the content and, most importantly, the impact of the policy actions needed to limit greenhouse gas emissions. One contributing factor is the lack of systematic evidence on the impact of mitigation policy on the welfare of the poor in developing countries. In this letter we consider two alternative policy scenarios, one in which only the Annex I countries take action, and the second in which the first policy is accompanied by a forest carbon sequestration policy in the non-Annex regions. Using an economic climate policy analysis framework, we assess the poverty impacts of the above policy scenarios on seven socio-economic groups in 14 developing countries. We find that the Annex-I-only policy is poverty friendly, since it enhances the competitiveness of non-Annex countries—particularly in agricultural production. However, once forest carbon sequestration incentives in the non-Annex regions are added to the policy package, the overall effect is to raise poverty in the majority of our sample countries. The reason for this outcome is that the dominant impacts of this policy are to raise returns to land, reduce agricultural output and raise food prices. Since poor households rely primarily on their own labor for income, and generally own little land, and since they also spend a large share of their income on food, they are generally hurt on both the earning and the spending fronts. This result is troubling, since forest carbon sequestration—particularly through avoided deforestation—is a promising, low cost option for climate change mitigation.

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well my name is Thom Cohen Professor of watching economics at Purdue University where I conduct research cool economic analysis
I'd like to talk to you today about the hobby impacts climate mitigation policies climate policy is 1 of the most controversial topics and this landscape and it's 1 of the grand challenges of the coming century 1 of the reasons it's so controversial is that it affects different groups the differential 1 group that has received it in addition sufficient attention come to this the worst households world more than a billion people in developing countries live on a dollar a day these are households that the particularly vulnerable to climate change impacts from climate change and in them as we showed our study they are also likely to be significantly affected by the attempts to prevent change the purpose so the purpose of this study is to and delve into the the on only poor households in developing countries the goal of this paper which have
co-authored with saying in our goal of 2 colleagues at Purdue University is to take a 1st cut at understanding the likely impacts of climate change mitigation policies on poverty in developing countries been ordered to do so we 1st have to understand
who the poor whether they live how do they and their income and how do they spend their income so for this purpose we delve into household surveys for 14 developing countries we classify individuals households according to the primary income source of a household so 95 per cent or more of their income comes from self employment in agriculture non-agriculture wage labor will urban transfers where the diversified households will honor that's the balance of the household so the 7 categories will be looking at this figure shows however these
categories breakdown in terms of share of overall poverty so on the vertical axis we have the sharing the colors and of different strata the 7 Stratus shown at the bottom and across these bars we in the 14 countries in our sample so on the left you have countries very red that leans heavily dependent upon the poor are heavily comprised of households that have self employed in agriculture and as we move to the right we see more than the diversified households more non-agricultural households more transfer depended households this shows how this
slide shows how the poor spend their income this is taken from Bangladesh in the shower shares my love the income spent on food the top component non-durable services durables you can see that for the poorest households food is a very important share their income that means that anything that raises food prices will not adversely affect the poor in particular we looked in this paper at now 2 scenarios scenario
in scenario B scenario a user Kyoto-like scenario in which PMX 1 countries engage in and around the forest carbon sequence station as well as a carbon tax on both fossil fuel CO 2 emissions and on commissions scenario B had 1st currency prostration in developing countries is
that the very policies that most of the meeting in finding missing specifications also 1 of the very policies that not friendly to in developing countries Council as a beginning these are households that stand to lose a lot of time in accent responded in so so mitigating climate changes that would however in light of this study we believe it any such climate change policies the accompanied by significant investments in the development and this includes improved access for these households markets improved access to point the credit and the proof access to education health care and these are the things that will ultimately that these households out of poverty and more resilient in the face of future on