The Cost of Adjustment to Green Growth Policies : Lessons from Trade Adjustment Costs
Green growth policies confront firms and workers with adjustments that may create welfare costs for different segments of the population and cause reductions in near-term actual versus potential gross domestic product. There is little evidence on t...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2012/10/16862151/cost-adjustment-green-growth-policies-lessons-trade-adjustment-costs http://hdl.handle.net/10986/12079 |
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okr-10986-12079 |
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oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
ADJUSTMENT ASSISTANCE ADJUSTMENT COST ADJUSTMENT COSTS ADJUSTMENT POLICIES ADJUSTMENT PROCESS AGGREGATE INCOME AGRICULTURE AVERAGE WAGE AVERAGE WAGES BARGAINING POWER BENCHMARK CAPITAL ACCUMULATION CAPITAL MARKET CAPITAL MARKETS CAPITAL STOCK CARBON CARBON ENERGY CHILD LABOR CLIMATE CHANGE COAL CODES OF CONDUCT COMPARATIVE ADVANTAGE COMPETITIVE ADVANTAGE COMPLIANCE COSTS CONSUMERS CREDIT CONSTRAINTS DAMAGES DEADWEIGHT DEADWEIGHT LOSS DEMOGRAPHIC DEMOGRAPHICS DEVELOPING COUNTRIES DEVELOPING ECONOMIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISCOUNT RATE DISCOUNTED VALUE DISPLACED WORKERS DRIVERS EARNING ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC RESEARCH EFFICIENCY WAGES ELASTICITY EMISSIONS EMPIRICAL EVIDENCE EMPLOYEE EMPLOYMENT EFFECTS EMPLOYMENT LEVELS EMPLOYMENT RESEARCH EMPLOYMENT SUBSIDIES EMPLOYMENT TURNOVER ENERGY EFFICIENCY ENVIRONMENTAL ENVIRONMENTAL DAMAGES ENVIRONMENTAL POLICIES ENVIRONMENTAL QUALITY ENVIRONMENTAL RESOURCES ENVIRONMENTAL STANDARDS EQUILIBRIUM EXPLOITATION EXPORT MARKET EXPORT-ORIENTED INDUSTRY EXPORTS EXTERNALITIES EXTERNALITY FACTOR MARKETS FACTORS OF PRODUCTION FAIR TRADE FIRING COSTS FIRM SURVEYS FIXED CAPITAL FIXED INVESTMENT FOSSIL FUELS FREE TRADE FRICTIONAL UNEMPLOYMENT GDP GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODELS GROWTH MODELS GROWTH POLICIES GROWTH POLICY HOME COUNTRY HOUSEHOLD INCOME HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HUMAN CAPITAL HUMAN RIGHTS HUMAN RIGHTS ISSUES IMPROVED WORKING CONDITIONS INCOME INCOME INEQUALITY INCOMES INDUSTRY WAGE INPUT PRICES INSURANCE MARKETS INTANGIBLE INTERNATIONAL TRADE INVESTMENT CLIMATE IRREVERSIBILITY JOB DISPLACEMENT JOB TRAINING JOBS LABOR ADJUSTMENT LABOR ADJUSTMENT COSTS LABOR ALLOCATION LABOR ALLOCATIONS LABOR DEMAND LABOR DISPLACEMENT LABOR FORCE LABOR MARKET LABOR MARKET ADJUSTMENT LABOR MARKET FLEXIBILITY LABOR MARKET POLICIES LABOR MARKET REFORM LABOR MARKET REFORMS LABOR MARKET RIGIDITIES LABOR MARKET TURNOVER LABOR MARKETS LABOR MOBILITY LABOR PRODUCTIVITY LABOR REALLOCATION LABOR REGULATIONS LABOR SUPPLY LABOR UNIONS LABOUR LABOUR ADJUSTMENT LABOUR MARKET LABOUR MARKET REGULATIONS LABOUR MOVEMENTS LONG-RUN EMPLOYMENT MARGINAL PRODUCT MARGINAL PRODUCTIVITY MARKET DISTORTION MARKET DISTORTIONS MARKET LIBERALIZATION MIDDLE-INCOME COUNTRIES MINIMUM WAGE MINIMUM WAGES NEW MARKET NEW MARKET OPPORTUNITIES NOMINAL WAGES OLDER WORKERS OPTIMIZATION OPTION VALUE OUTPUTS POLICY MAKERS POLITICAL ECONOMY POLLUTION POLLUTION TAX POTENTIAL GROSS DOMESTIC PRODUCT PRESENT VALUE PREVIOUS SECTION PRODUCERS PRODUCTION FUNCTION PRODUCTION WORKER PRODUCTIVE ACTIVITIES PRODUCTIVE FIRMS PRODUCTIVITY PRODUCTIVITY GAIN PRODUCTIVITY GAINS PROFIT MAXIMIZATION PROFIT SHARING PROTECTED INDUSTRIES PROTECTED INDUSTRY QUOTAS RATIONAL EXPECTATIONS REAL WAGE REAL WAGES RENTS SAFETY SAFETY NET SELLING PRICE SKILL PREMIUM SKILL PREMIUMS SKILL UPGRADING SOCIAL BENEFITS STARTUP STRUCTURAL ADJUSTMENT SUSTAINABLE DEVELOPMENT TARGETED EMPLOYMENT SUBSIDY TAXATION TERMS OF TRADE TRADE LIBERALIZATION TRADE POLICIES TRADE POLICY TRADE REFORMS TRAINING COSTS UNEMPLOYED UNEMPLOYED WORKER UNEMPLOYED WORKERS UNEMPLOYMENT UNEMPLOYMENT INSURANCE UNEMPLOYMENT INSURANCE PROGRAM UNEMPLOYMENT TRANSITION UNPROTECTED SECTOR UNSKILLED LABOR UNSKILLED WORKERS URUGUAY ROUND UTILITY FUNCTION VALUE OF OUTPUT VERTICAL INTEGRATION VOLATILITY WAGE BARGAINING WAGE DIFFERENTIALS WAGE GROWTH WAGE INCREASE WAGE INCREASES WAGE INEQUALITY WAGE LEVELS WAGE PREMIUM WAGE PREMIUMS WAGE STRUCTURE WAGE SUBSIDIES WAGES WELFARE EFFECTS WELFARE GAINS WORKERS WORKING CONDITIONS WORLD TRADE WTO YOUNG WORKERS |
| spellingShingle |
ADJUSTMENT ASSISTANCE ADJUSTMENT COST ADJUSTMENT COSTS ADJUSTMENT POLICIES ADJUSTMENT PROCESS AGGREGATE INCOME AGRICULTURE AVERAGE WAGE AVERAGE WAGES BARGAINING POWER BENCHMARK CAPITAL ACCUMULATION CAPITAL MARKET CAPITAL MARKETS CAPITAL STOCK CARBON CARBON ENERGY CHILD LABOR CLIMATE CHANGE COAL CODES OF CONDUCT COMPARATIVE ADVANTAGE COMPETITIVE ADVANTAGE COMPLIANCE COSTS CONSUMERS CREDIT CONSTRAINTS DAMAGES DEADWEIGHT DEADWEIGHT LOSS DEMOGRAPHIC DEMOGRAPHICS DEVELOPING COUNTRIES DEVELOPING ECONOMIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISCOUNT RATE DISCOUNTED VALUE DISPLACED WORKERS DRIVERS EARNING ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC RESEARCH EFFICIENCY WAGES ELASTICITY EMISSIONS EMPIRICAL EVIDENCE EMPLOYEE EMPLOYMENT EFFECTS EMPLOYMENT LEVELS EMPLOYMENT RESEARCH EMPLOYMENT SUBSIDIES EMPLOYMENT TURNOVER ENERGY EFFICIENCY ENVIRONMENTAL ENVIRONMENTAL DAMAGES ENVIRONMENTAL POLICIES ENVIRONMENTAL QUALITY ENVIRONMENTAL RESOURCES ENVIRONMENTAL STANDARDS EQUILIBRIUM EXPLOITATION EXPORT MARKET EXPORT-ORIENTED INDUSTRY EXPORTS EXTERNALITIES EXTERNALITY FACTOR MARKETS FACTORS OF PRODUCTION FAIR TRADE FIRING COSTS FIRM SURVEYS FIXED CAPITAL FIXED INVESTMENT FOSSIL FUELS FREE TRADE FRICTIONAL UNEMPLOYMENT GDP GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODELS GROWTH MODELS GROWTH POLICIES GROWTH POLICY HOME COUNTRY HOUSEHOLD INCOME HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HUMAN CAPITAL HUMAN RIGHTS HUMAN RIGHTS ISSUES IMPROVED WORKING CONDITIONS INCOME INCOME INEQUALITY INCOMES INDUSTRY WAGE INPUT PRICES INSURANCE MARKETS INTANGIBLE INTERNATIONAL TRADE INVESTMENT CLIMATE IRREVERSIBILITY JOB DISPLACEMENT JOB TRAINING JOBS LABOR ADJUSTMENT LABOR ADJUSTMENT COSTS LABOR ALLOCATION LABOR ALLOCATIONS LABOR DEMAND LABOR DISPLACEMENT LABOR FORCE LABOR MARKET LABOR MARKET ADJUSTMENT LABOR MARKET FLEXIBILITY LABOR MARKET POLICIES LABOR MARKET REFORM LABOR MARKET REFORMS LABOR MARKET RIGIDITIES LABOR MARKET TURNOVER LABOR MARKETS LABOR MOBILITY LABOR PRODUCTIVITY LABOR REALLOCATION LABOR REGULATIONS LABOR SUPPLY LABOR UNIONS LABOUR LABOUR ADJUSTMENT LABOUR MARKET LABOUR MARKET REGULATIONS LABOUR MOVEMENTS LONG-RUN EMPLOYMENT MARGINAL PRODUCT MARGINAL PRODUCTIVITY MARKET DISTORTION MARKET DISTORTIONS MARKET LIBERALIZATION MIDDLE-INCOME COUNTRIES MINIMUM WAGE MINIMUM WAGES NEW MARKET NEW MARKET OPPORTUNITIES NOMINAL WAGES OLDER WORKERS OPTIMIZATION OPTION VALUE OUTPUTS POLICY MAKERS POLITICAL ECONOMY POLLUTION POLLUTION TAX POTENTIAL GROSS DOMESTIC PRODUCT PRESENT VALUE PREVIOUS SECTION PRODUCERS PRODUCTION FUNCTION PRODUCTION WORKER PRODUCTIVE ACTIVITIES PRODUCTIVE FIRMS PRODUCTIVITY PRODUCTIVITY GAIN PRODUCTIVITY GAINS PROFIT MAXIMIZATION PROFIT SHARING PROTECTED INDUSTRIES PROTECTED INDUSTRY QUOTAS RATIONAL EXPECTATIONS REAL WAGE REAL WAGES RENTS SAFETY SAFETY NET SELLING PRICE SKILL PREMIUM SKILL PREMIUMS SKILL UPGRADING SOCIAL BENEFITS STARTUP STRUCTURAL ADJUSTMENT SUSTAINABLE DEVELOPMENT TARGETED EMPLOYMENT SUBSIDY TAXATION TERMS OF TRADE TRADE LIBERALIZATION TRADE POLICIES TRADE POLICY TRADE REFORMS TRAINING COSTS UNEMPLOYED UNEMPLOYED WORKER UNEMPLOYED WORKERS UNEMPLOYMENT UNEMPLOYMENT INSURANCE UNEMPLOYMENT INSURANCE PROGRAM UNEMPLOYMENT TRANSITION UNPROTECTED SECTOR UNSKILLED LABOR UNSKILLED WORKERS URUGUAY ROUND UTILITY FUNCTION VALUE OF OUTPUT VERTICAL INTEGRATION VOLATILITY WAGE BARGAINING WAGE DIFFERENTIALS WAGE GROWTH WAGE INCREASE WAGE INCREASES WAGE INEQUALITY WAGE LEVELS WAGE PREMIUM WAGE PREMIUMS WAGE STRUCTURE WAGE SUBSIDIES WAGES WELFARE EFFECTS WELFARE GAINS WORKERS WORKING CONDITIONS WORLD TRADE WTO YOUNG WORKERS Porto, Guido The Cost of Adjustment to Green Growth Policies : Lessons from Trade Adjustment Costs |
| relation |
Policy Research Working Paper;No. 6237 |
| description |
Green growth policies confront firms and
workers with adjustments that may create welfare costs for
different segments of the population and cause reductions in
near-term actual versus potential gross domestic product.
There is little evidence on the cost of adjustment to
climate change measures, and only limited evidence for more
general environmental policies, especially in developing
countries. Therefore, this paper canvasses the research on
adjustment costs to trade policies to draw analogies and
highlight differences compared with the potential impacts of
green growth policies. Trade policies affect prices and work
directly on technology choice. In the presence of adjustment
costs, firms may experience impacts on wages, employment,
and incentives to adopt alternative technologies. Both types
of trade policy impacts may be amplified by technology
availability and credit constraints. Many green growth
policies are likely to work via the same mechanisms, that
is, taxes on emissions or changes in technology
requirements. However, trade liberalization is typically
seen as offering higher total incomes, albeit with winners
and losers. Green growth policies are thought of as
welfare-enhancing at the collective level but may not be
income-enhancing at the individual level. This implies much
more difficulty in measuring the potential gains associated
with green growth policies. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Porto, Guido |
| author_facet |
Porto, Guido |
| author_sort |
Porto, Guido |
| title |
The Cost of Adjustment to Green Growth Policies : Lessons from Trade Adjustment Costs |
| title_short |
The Cost of Adjustment to Green Growth Policies : Lessons from Trade Adjustment Costs |
| title_full |
The Cost of Adjustment to Green Growth Policies : Lessons from Trade Adjustment Costs |
| title_fullStr |
The Cost of Adjustment to Green Growth Policies : Lessons from Trade Adjustment Costs |
| title_full_unstemmed |
The Cost of Adjustment to Green Growth Policies : Lessons from Trade Adjustment Costs |
| title_sort |
cost of adjustment to green growth policies : lessons from trade adjustment costs |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2012/10/16862151/cost-adjustment-green-growth-policies-lessons-trade-adjustment-costs http://hdl.handle.net/10986/12079 |
| _version_ |
1764418950914899968 |
| spelling |
okr-10986-120792021-04-23T14:02:59Z The Cost of Adjustment to Green Growth Policies : Lessons from Trade Adjustment Costs Porto, Guido ADJUSTMENT ASSISTANCE ADJUSTMENT COST ADJUSTMENT COSTS ADJUSTMENT POLICIES ADJUSTMENT PROCESS AGGREGATE INCOME AGRICULTURE AVERAGE WAGE AVERAGE WAGES BARGAINING POWER BENCHMARK CAPITAL ACCUMULATION CAPITAL MARKET CAPITAL MARKETS CAPITAL STOCK CARBON CARBON ENERGY CHILD LABOR CLIMATE CHANGE COAL CODES OF CONDUCT COMPARATIVE ADVANTAGE COMPETITIVE ADVANTAGE COMPLIANCE COSTS CONSUMERS CREDIT CONSTRAINTS DAMAGES DEADWEIGHT DEADWEIGHT LOSS DEMOGRAPHIC DEMOGRAPHICS DEVELOPING COUNTRIES DEVELOPING ECONOMIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISCOUNT RATE DISCOUNTED VALUE DISPLACED WORKERS DRIVERS EARNING ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC RESEARCH EFFICIENCY WAGES ELASTICITY EMISSIONS EMPIRICAL EVIDENCE EMPLOYEE EMPLOYMENT EFFECTS EMPLOYMENT LEVELS EMPLOYMENT RESEARCH EMPLOYMENT SUBSIDIES EMPLOYMENT TURNOVER ENERGY EFFICIENCY ENVIRONMENTAL ENVIRONMENTAL DAMAGES ENVIRONMENTAL POLICIES ENVIRONMENTAL QUALITY ENVIRONMENTAL RESOURCES ENVIRONMENTAL STANDARDS EQUILIBRIUM EXPLOITATION EXPORT MARKET EXPORT-ORIENTED INDUSTRY EXPORTS EXTERNALITIES EXTERNALITY FACTOR MARKETS FACTORS OF PRODUCTION FAIR TRADE FIRING COSTS FIRM SURVEYS FIXED CAPITAL FIXED INVESTMENT FOSSIL FUELS FREE TRADE FRICTIONAL UNEMPLOYMENT GDP GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODELS GROWTH MODELS GROWTH POLICIES GROWTH POLICY HOME COUNTRY HOUSEHOLD INCOME HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HUMAN CAPITAL HUMAN RIGHTS HUMAN RIGHTS ISSUES IMPROVED WORKING CONDITIONS INCOME INCOME INEQUALITY INCOMES INDUSTRY WAGE INPUT PRICES INSURANCE MARKETS INTANGIBLE INTERNATIONAL TRADE INVESTMENT CLIMATE IRREVERSIBILITY JOB DISPLACEMENT JOB TRAINING JOBS LABOR ADJUSTMENT LABOR ADJUSTMENT COSTS LABOR ALLOCATION LABOR ALLOCATIONS LABOR DEMAND LABOR DISPLACEMENT LABOR FORCE LABOR MARKET LABOR MARKET ADJUSTMENT LABOR MARKET FLEXIBILITY LABOR MARKET POLICIES LABOR MARKET REFORM LABOR MARKET REFORMS LABOR MARKET RIGIDITIES LABOR MARKET TURNOVER LABOR MARKETS LABOR MOBILITY LABOR PRODUCTIVITY LABOR REALLOCATION LABOR REGULATIONS LABOR SUPPLY LABOR UNIONS LABOUR LABOUR ADJUSTMENT LABOUR MARKET LABOUR MARKET REGULATIONS LABOUR MOVEMENTS LONG-RUN EMPLOYMENT MARGINAL PRODUCT MARGINAL PRODUCTIVITY MARKET DISTORTION MARKET DISTORTIONS MARKET LIBERALIZATION MIDDLE-INCOME COUNTRIES MINIMUM WAGE MINIMUM WAGES NEW MARKET NEW MARKET OPPORTUNITIES NOMINAL WAGES OLDER WORKERS OPTIMIZATION OPTION VALUE OUTPUTS POLICY MAKERS POLITICAL ECONOMY POLLUTION POLLUTION TAX POTENTIAL GROSS DOMESTIC PRODUCT PRESENT VALUE PREVIOUS SECTION PRODUCERS PRODUCTION FUNCTION PRODUCTION WORKER PRODUCTIVE ACTIVITIES PRODUCTIVE FIRMS PRODUCTIVITY PRODUCTIVITY GAIN PRODUCTIVITY GAINS PROFIT MAXIMIZATION PROFIT SHARING PROTECTED INDUSTRIES PROTECTED INDUSTRY QUOTAS RATIONAL EXPECTATIONS REAL WAGE REAL WAGES RENTS SAFETY SAFETY NET SELLING PRICE SKILL PREMIUM SKILL PREMIUMS SKILL UPGRADING SOCIAL BENEFITS STARTUP STRUCTURAL ADJUSTMENT SUSTAINABLE DEVELOPMENT TARGETED EMPLOYMENT SUBSIDY TAXATION TERMS OF TRADE TRADE LIBERALIZATION TRADE POLICIES TRADE POLICY TRADE REFORMS TRAINING COSTS UNEMPLOYED UNEMPLOYED WORKER UNEMPLOYED WORKERS UNEMPLOYMENT UNEMPLOYMENT INSURANCE UNEMPLOYMENT INSURANCE PROGRAM UNEMPLOYMENT TRANSITION UNPROTECTED SECTOR UNSKILLED LABOR UNSKILLED WORKERS URUGUAY ROUND UTILITY FUNCTION VALUE OF OUTPUT VERTICAL INTEGRATION VOLATILITY WAGE BARGAINING WAGE DIFFERENTIALS WAGE GROWTH WAGE INCREASE WAGE INCREASES WAGE INEQUALITY WAGE LEVELS WAGE PREMIUM WAGE PREMIUMS WAGE STRUCTURE WAGE SUBSIDIES WAGES WELFARE EFFECTS WELFARE GAINS WORKERS WORKING CONDITIONS WORLD TRADE WTO YOUNG WORKERS Green growth policies confront firms and workers with adjustments that may create welfare costs for different segments of the population and cause reductions in near-term actual versus potential gross domestic product. There is little evidence on the cost of adjustment to climate change measures, and only limited evidence for more general environmental policies, especially in developing countries. Therefore, this paper canvasses the research on adjustment costs to trade policies to draw analogies and highlight differences compared with the potential impacts of green growth policies. Trade policies affect prices and work directly on technology choice. In the presence of adjustment costs, firms may experience impacts on wages, employment, and incentives to adopt alternative technologies. Both types of trade policy impacts may be amplified by technology availability and credit constraints. Many green growth policies are likely to work via the same mechanisms, that is, taxes on emissions or changes in technology requirements. However, trade liberalization is typically seen as offering higher total incomes, albeit with winners and losers. Green growth policies are thought of as welfare-enhancing at the collective level but may not be income-enhancing at the individual level. This implies much more difficulty in measuring the potential gains associated with green growth policies. 2013-01-03T22:54:05Z 2013-01-03T22:54:05Z 2012-10 http://documents.worldbank.org/curated/en/2012/10/16862151/cost-adjustment-green-growth-policies-lessons-trade-adjustment-costs http://hdl.handle.net/10986/12079 English en_US Policy Research Working Paper;No. 6237 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |