Is Green Growth Good for the Poor?

The developing world is experiencing substantial environmental change, and climate change is likely to accelerate these processes in the coming decades. Due to their initial poverty, and their relatively high dependence on environmental capital for...

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Bibliographic Details
Main Author: Dercon, Stefan
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2013
Subjects:
GDP
Online Access:http://documents.worldbank.org/curated/en/2012/10/16835124/green-growth-good-poor
http://hdl.handle.net/10986/12082
id okr-10986-12082
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ABSOLUTE TERMS
ADVERSE IMPACTS
AGRICULTURAL GROWTH
AGRICULTURAL PRODUCTION
AIR POLLUTION
AIR QUALITY
ALLOCATION
ALTERNATIVE GROWTH PATHS
ALTERNATIVE INVESTMENTS
CAPITAL COSTS
CAPITAL INVESTMENTS
CARBON
CARBON ENERGY
CLEAN AIR ACT
CLEAN ENERGY
CLEAN ENERGY ECONOMY
CLEAN WATER
CLEANER WATER
CLIMATE
CLIMATE CHANGE
CLIMATE RESILIENCE
CLIMATIC CONDITIONS
COAL
COMPARATIVE ADVANTAGE
CONSUMERS
CONSUMPTION SMOOTHING
COST OF FUEL
COUNTERFACTUAL
DEFORESTATION
DEVELOPING COUNTRIES
DEVELOPING WORLD
DEVELOPMENT ECONOMICS
DEVELOPMENT INDICATORS
DEVELOPMENT POLICY
DEVELOPMENT REPORT
DEVELOPMENT RESEARCH
DISCOUNT RATES
DISTRIBUTIONAL EFFECTS
DROUGHT
ECONOMETRICS
ECONOMIC ACTIVITIES
ECONOMIC ACTIVITY
ECONOMIC ASSETS
ECONOMIC CHANGE
ECONOMIC DEVELOPMENT
ECONOMIC DIVERSIFICATION
ECONOMIC GROWTH
ECONOMIC GROWTH RATES
ECONOMIC INTEGRATION
ECONOMIC OPPORTUNITIES
ECONOMIC PRODUCTIVITY
ECONOMIC RECOVERY
ECONOMIC REVIEW PAPERS
ECONOMICS
EFFICIENCY GAINS
ELASTICITY
EMISSIONS
EMPIRICAL BASIS
ENERGY PRODUCTION
ENVIRONMENTAL
ENVIRONMENTAL BENEFITS
ENVIRONMENTAL CHANGES
ENVIRONMENTAL COSTS
ENVIRONMENTAL DEGRADATION
ENVIRONMENTAL IMPACTS
ENVIRONMENTAL PROBLEMS
ENVIRONMENTAL REGULATION
ENVIRONMENTAL REGULATIONS
EXPECTED RETURNS
EXPORTS
EXTERNALITIES
EXTERNALITY
EXTREME EVENTS
EXTREME WEATHER
EXTREME WEATHER EVENTS
FARM WORKERS
FARMERS
FISH
FISHERIES
FOOD PRICES
FOOD SECURITY
FOOD SELF-SUFFICIENCY
FOSSIL FUELS
FRESH WATER
FUEL PRICES
GDP
GDP PER CAPITA
GLOBAL POVERTY
GROSS DOMESTIC PRODUCT
GROWTH CONTEXT
GROWTH MODEL
GROWTH POLICIES
GROWTH PROCESS
GROWTH PROSPECTS
GROWTH RATES
GROWTH THEORY
HIGH GROWTH
HIGH POVERTY
HUMAN CAPITAL
HUMAN CAPITAL INVESTMENT
HUMAN DEVELOPMENT
HUMAN HEALTH
IMPACT ON POVERTY
IMPACTS OF CLIMATE CHANGE
INCOME
INCOME GROWTH
INCOME RISK
INCOME SMOOTHING
INCREASE GROWTH
INCREASING RETURNS
INCREASING RETURNS TO SCALE
INEQUALITY
INFORMAL INSURANCE
INFORMAL INSURANCE MECHANISMS
INFRASTRUCTURE INVESTMENT
INSURANCE
INSURANCE MARKET
INTERNATIONAL TRADE
JOBS
LABOR PRODUCTIVITY
LIQUIDITY
LIVELIHOOD SECURITY
LIVING CONDITIONS
LIVING STANDARDS
LONG RUN
LOW-INCOME COUNTRIES
MACROECONOMIC POLICIES
MARKET FAILURE
MARKET FAILURES
MICROECONOMIC ANALYSIS
NATURAL CAPITAL
NATURAL RESOURCES
OPPORTUNITY COST
OPPORTUNITY COSTS
OUTPUT GROWTH
PERSISTENT POVERTY
POLICY INSTRUMENT
POLICY RESEARCH
POLITICAL ECONOMY
POLLUTION
POOR
POOR COUNTRIES
POOR HOUSEHOLDS
POOR POPULATIONS
POSITIVE EFFECTS
POTENTIAL OUTPUT
POVERTY ALLEVIATION
POVERTY CHANGE
POVERTY DYNAMICS
POVERTY IMPACT
POVERTY PERSISTENCE
POVERTY REDUCTION
POVERTY TRAPS
POVERTY-REDUCING GROWTH
PRIVATE GOODS
PRO-POOR
PRO-POOR GROWTH
PRODUCERS
PRODUCTION PROCESSES
PRODUCTIVE ASSETS
PRODUCTIVITY GROWTH
PROPERTY RIGHTS
PUBLIC INVESTMENT
PUBLIC SECTOR
RAPID GROWTH
REAL INCOME
REDUCING POVERTY
REMOTE AREAS
RETURNS TO SCALE
RICH COUNTRIES
RISKS OF CLIMATE CHANGE
RURAL
RURAL AREAS
RURAL LIVELIHOODS
RURAL POVERTY
RURAL SETTINGS
SAFETY NETS
SANITATION
SAVINGS
SECTOR ACTIVITIES
SHADOW PRICES
SKILLED LABOR
SKILLED WORKERS
SMALLHOLDER AGRICULTURE
SOCIAL COSTS
SOCIAL PROTECTION
SOIL DEGRADATION
SOIL EROSION
SPATIAL PROCESSES
STRUCTURAL CHANGE
SUSTAINABLE DEVELOPMENT
TAXATION
TECHNOLOGICAL PROGRESS
URBAN AREAS
URBAN POOR
WATER POLLUTION
WATER PRICES
WATER PRICING
WEALTH
WELFARE EFFECTS
WELFARE GAINS
spellingShingle ABSOLUTE TERMS
ADVERSE IMPACTS
AGRICULTURAL GROWTH
AGRICULTURAL PRODUCTION
AIR POLLUTION
AIR QUALITY
ALLOCATION
ALTERNATIVE GROWTH PATHS
ALTERNATIVE INVESTMENTS
CAPITAL COSTS
CAPITAL INVESTMENTS
CARBON
CARBON ENERGY
CLEAN AIR ACT
CLEAN ENERGY
CLEAN ENERGY ECONOMY
CLEAN WATER
CLEANER WATER
CLIMATE
CLIMATE CHANGE
CLIMATE RESILIENCE
CLIMATIC CONDITIONS
COAL
COMPARATIVE ADVANTAGE
CONSUMERS
CONSUMPTION SMOOTHING
COST OF FUEL
COUNTERFACTUAL
DEFORESTATION
DEVELOPING COUNTRIES
DEVELOPING WORLD
DEVELOPMENT ECONOMICS
DEVELOPMENT INDICATORS
DEVELOPMENT POLICY
DEVELOPMENT REPORT
DEVELOPMENT RESEARCH
DISCOUNT RATES
DISTRIBUTIONAL EFFECTS
DROUGHT
ECONOMETRICS
ECONOMIC ACTIVITIES
ECONOMIC ACTIVITY
ECONOMIC ASSETS
ECONOMIC CHANGE
ECONOMIC DEVELOPMENT
ECONOMIC DIVERSIFICATION
ECONOMIC GROWTH
ECONOMIC GROWTH RATES
ECONOMIC INTEGRATION
ECONOMIC OPPORTUNITIES
ECONOMIC PRODUCTIVITY
ECONOMIC RECOVERY
ECONOMIC REVIEW PAPERS
ECONOMICS
EFFICIENCY GAINS
ELASTICITY
EMISSIONS
EMPIRICAL BASIS
ENERGY PRODUCTION
ENVIRONMENTAL
ENVIRONMENTAL BENEFITS
ENVIRONMENTAL CHANGES
ENVIRONMENTAL COSTS
ENVIRONMENTAL DEGRADATION
ENVIRONMENTAL IMPACTS
ENVIRONMENTAL PROBLEMS
ENVIRONMENTAL REGULATION
ENVIRONMENTAL REGULATIONS
EXPECTED RETURNS
EXPORTS
EXTERNALITIES
EXTERNALITY
EXTREME EVENTS
EXTREME WEATHER
EXTREME WEATHER EVENTS
FARM WORKERS
FARMERS
FISH
FISHERIES
FOOD PRICES
FOOD SECURITY
FOOD SELF-SUFFICIENCY
FOSSIL FUELS
FRESH WATER
FUEL PRICES
GDP
GDP PER CAPITA
GLOBAL POVERTY
GROSS DOMESTIC PRODUCT
GROWTH CONTEXT
GROWTH MODEL
GROWTH POLICIES
GROWTH PROCESS
GROWTH PROSPECTS
GROWTH RATES
GROWTH THEORY
HIGH GROWTH
HIGH POVERTY
HUMAN CAPITAL
HUMAN CAPITAL INVESTMENT
HUMAN DEVELOPMENT
HUMAN HEALTH
IMPACT ON POVERTY
IMPACTS OF CLIMATE CHANGE
INCOME
INCOME GROWTH
INCOME RISK
INCOME SMOOTHING
INCREASE GROWTH
INCREASING RETURNS
INCREASING RETURNS TO SCALE
INEQUALITY
INFORMAL INSURANCE
INFORMAL INSURANCE MECHANISMS
INFRASTRUCTURE INVESTMENT
INSURANCE
INSURANCE MARKET
INTERNATIONAL TRADE
JOBS
LABOR PRODUCTIVITY
LIQUIDITY
LIVELIHOOD SECURITY
LIVING CONDITIONS
LIVING STANDARDS
LONG RUN
LOW-INCOME COUNTRIES
MACROECONOMIC POLICIES
MARKET FAILURE
MARKET FAILURES
MICROECONOMIC ANALYSIS
NATURAL CAPITAL
NATURAL RESOURCES
OPPORTUNITY COST
OPPORTUNITY COSTS
OUTPUT GROWTH
PERSISTENT POVERTY
POLICY INSTRUMENT
POLICY RESEARCH
POLITICAL ECONOMY
POLLUTION
POOR
POOR COUNTRIES
POOR HOUSEHOLDS
POOR POPULATIONS
POSITIVE EFFECTS
POTENTIAL OUTPUT
POVERTY ALLEVIATION
POVERTY CHANGE
POVERTY DYNAMICS
POVERTY IMPACT
POVERTY PERSISTENCE
POVERTY REDUCTION
POVERTY TRAPS
POVERTY-REDUCING GROWTH
PRIVATE GOODS
PRO-POOR
PRO-POOR GROWTH
PRODUCERS
PRODUCTION PROCESSES
PRODUCTIVE ASSETS
PRODUCTIVITY GROWTH
PROPERTY RIGHTS
PUBLIC INVESTMENT
PUBLIC SECTOR
RAPID GROWTH
REAL INCOME
REDUCING POVERTY
REMOTE AREAS
RETURNS TO SCALE
RICH COUNTRIES
RISKS OF CLIMATE CHANGE
RURAL
RURAL AREAS
RURAL LIVELIHOODS
RURAL POVERTY
RURAL SETTINGS
SAFETY NETS
SANITATION
SAVINGS
SECTOR ACTIVITIES
SHADOW PRICES
SKILLED LABOR
SKILLED WORKERS
SMALLHOLDER AGRICULTURE
SOCIAL COSTS
SOCIAL PROTECTION
SOIL DEGRADATION
SOIL EROSION
SPATIAL PROCESSES
STRUCTURAL CHANGE
SUSTAINABLE DEVELOPMENT
TAXATION
TECHNOLOGICAL PROGRESS
URBAN AREAS
URBAN POOR
WATER POLLUTION
WATER PRICES
WATER PRICING
WEALTH
WELFARE EFFECTS
WELFARE GAINS
Dercon, Stefan
Is Green Growth Good for the Poor?
relation Policy Research Working Paper; No. 6231
description The developing world is experiencing substantial environmental change, and climate change is likely to accelerate these processes in the coming decades. Due to their initial poverty, and their relatively high dependence on environmental capital for their livelihoods, the poor are likely to suffer most due to their low resources for mitigation and investment in adaptation. Economic growth is essential for any large-scale poverty reduction. Green growth, a growth process that is sensitive to environmental and climate change concerns, is often seen to be particularly helpful in this respect, leading to a win-win in growth and poverty reduction terms, with additional gains for the cause of greening the planet and avoiding further disastrous environmental change. This paper argues that such a view ignores important trade-offs in the nature of "green growth" strategies, stemming from a poor understanding of the sector and spatial processes behind effective poverty reduction. High labor intensity, declining shares of agriculture in gross domestic product and employment, migration, and urbanization are essential features of poverty-reducing growth. The paper contrasts some common and stylized green-sensitive growth ideas related to agriculture, trade, technology, infrastructure, and urban development with the requirements of poverty-sensitive growth. It finds that they may well cause a slow-down in the effectiveness of growth in reducing poverty. The main lesson therefore is that trade-offs are bound to exist; they increase the social costs of green growth and should be explicitly addressed. If not, green growth may not be good for the poor and the poor should not be asked to pay the price for sustaining growth while greening the planet.
format Publications & Research :: Policy Research Working Paper
author Dercon, Stefan
author_facet Dercon, Stefan
author_sort Dercon, Stefan
title Is Green Growth Good for the Poor?
title_short Is Green Growth Good for the Poor?
title_full Is Green Growth Good for the Poor?
title_fullStr Is Green Growth Good for the Poor?
title_full_unstemmed Is Green Growth Good for the Poor?
title_sort is green growth good for the poor?
publisher World Bank, Washington, DC
publishDate 2013
url http://documents.worldbank.org/curated/en/2012/10/16835124/green-growth-good-poor
http://hdl.handle.net/10986/12082
_version_ 1764418961173118976
spelling okr-10986-120822021-04-23T14:02:59Z Is Green Growth Good for the Poor? Dercon, Stefan ABSOLUTE TERMS ADVERSE IMPACTS AGRICULTURAL GROWTH AGRICULTURAL PRODUCTION AIR POLLUTION AIR QUALITY ALLOCATION ALTERNATIVE GROWTH PATHS ALTERNATIVE INVESTMENTS CAPITAL COSTS CAPITAL INVESTMENTS CARBON CARBON ENERGY CLEAN AIR ACT CLEAN ENERGY CLEAN ENERGY ECONOMY CLEAN WATER CLEANER WATER CLIMATE CLIMATE CHANGE CLIMATE RESILIENCE CLIMATIC CONDITIONS COAL COMPARATIVE ADVANTAGE CONSUMERS CONSUMPTION SMOOTHING COST OF FUEL COUNTERFACTUAL DEFORESTATION DEVELOPING COUNTRIES DEVELOPING WORLD DEVELOPMENT ECONOMICS DEVELOPMENT INDICATORS DEVELOPMENT POLICY DEVELOPMENT REPORT DEVELOPMENT RESEARCH DISCOUNT RATES DISTRIBUTIONAL EFFECTS DROUGHT ECONOMETRICS ECONOMIC ACTIVITIES ECONOMIC ACTIVITY ECONOMIC ASSETS ECONOMIC CHANGE ECONOMIC DEVELOPMENT ECONOMIC DIVERSIFICATION ECONOMIC GROWTH ECONOMIC GROWTH RATES ECONOMIC INTEGRATION ECONOMIC OPPORTUNITIES ECONOMIC PRODUCTIVITY ECONOMIC RECOVERY ECONOMIC REVIEW PAPERS ECONOMICS EFFICIENCY GAINS ELASTICITY EMISSIONS EMPIRICAL BASIS ENERGY PRODUCTION ENVIRONMENTAL ENVIRONMENTAL BENEFITS ENVIRONMENTAL CHANGES ENVIRONMENTAL COSTS ENVIRONMENTAL DEGRADATION ENVIRONMENTAL IMPACTS ENVIRONMENTAL PROBLEMS ENVIRONMENTAL REGULATION ENVIRONMENTAL REGULATIONS EXPECTED RETURNS EXPORTS EXTERNALITIES EXTERNALITY EXTREME EVENTS EXTREME WEATHER EXTREME WEATHER EVENTS FARM WORKERS FARMERS FISH FISHERIES FOOD PRICES FOOD SECURITY FOOD SELF-SUFFICIENCY FOSSIL FUELS FRESH WATER FUEL PRICES GDP GDP PER CAPITA GLOBAL POVERTY GROSS DOMESTIC PRODUCT GROWTH CONTEXT GROWTH MODEL GROWTH POLICIES GROWTH PROCESS GROWTH PROSPECTS GROWTH RATES GROWTH THEORY HIGH GROWTH HIGH POVERTY HUMAN CAPITAL HUMAN CAPITAL INVESTMENT HUMAN DEVELOPMENT HUMAN HEALTH IMPACT ON POVERTY IMPACTS OF CLIMATE CHANGE INCOME INCOME GROWTH INCOME RISK INCOME SMOOTHING INCREASE GROWTH INCREASING RETURNS INCREASING RETURNS TO SCALE INEQUALITY INFORMAL INSURANCE INFORMAL INSURANCE MECHANISMS INFRASTRUCTURE INVESTMENT INSURANCE INSURANCE MARKET INTERNATIONAL TRADE JOBS LABOR PRODUCTIVITY LIQUIDITY LIVELIHOOD SECURITY LIVING CONDITIONS LIVING STANDARDS LONG RUN LOW-INCOME COUNTRIES MACROECONOMIC POLICIES MARKET FAILURE MARKET FAILURES MICROECONOMIC ANALYSIS NATURAL CAPITAL NATURAL RESOURCES OPPORTUNITY COST OPPORTUNITY COSTS OUTPUT GROWTH PERSISTENT POVERTY POLICY INSTRUMENT POLICY RESEARCH POLITICAL ECONOMY POLLUTION POOR POOR COUNTRIES POOR HOUSEHOLDS POOR POPULATIONS POSITIVE EFFECTS POTENTIAL OUTPUT POVERTY ALLEVIATION POVERTY CHANGE POVERTY DYNAMICS POVERTY IMPACT POVERTY PERSISTENCE POVERTY REDUCTION POVERTY TRAPS POVERTY-REDUCING GROWTH PRIVATE GOODS PRO-POOR PRO-POOR GROWTH PRODUCERS PRODUCTION PROCESSES PRODUCTIVE ASSETS PRODUCTIVITY GROWTH PROPERTY RIGHTS PUBLIC INVESTMENT PUBLIC SECTOR RAPID GROWTH REAL INCOME REDUCING POVERTY REMOTE AREAS RETURNS TO SCALE RICH COUNTRIES RISKS OF CLIMATE CHANGE RURAL RURAL AREAS RURAL LIVELIHOODS RURAL POVERTY RURAL SETTINGS SAFETY NETS SANITATION SAVINGS SECTOR ACTIVITIES SHADOW PRICES SKILLED LABOR SKILLED WORKERS SMALLHOLDER AGRICULTURE SOCIAL COSTS SOCIAL PROTECTION SOIL DEGRADATION SOIL EROSION SPATIAL PROCESSES STRUCTURAL CHANGE SUSTAINABLE DEVELOPMENT TAXATION TECHNOLOGICAL PROGRESS URBAN AREAS URBAN POOR WATER POLLUTION WATER PRICES WATER PRICING WEALTH WELFARE EFFECTS WELFARE GAINS The developing world is experiencing substantial environmental change, and climate change is likely to accelerate these processes in the coming decades. Due to their initial poverty, and their relatively high dependence on environmental capital for their livelihoods, the poor are likely to suffer most due to their low resources for mitigation and investment in adaptation. Economic growth is essential for any large-scale poverty reduction. Green growth, a growth process that is sensitive to environmental and climate change concerns, is often seen to be particularly helpful in this respect, leading to a win-win in growth and poverty reduction terms, with additional gains for the cause of greening the planet and avoiding further disastrous environmental change. This paper argues that such a view ignores important trade-offs in the nature of "green growth" strategies, stemming from a poor understanding of the sector and spatial processes behind effective poverty reduction. High labor intensity, declining shares of agriculture in gross domestic product and employment, migration, and urbanization are essential features of poverty-reducing growth. The paper contrasts some common and stylized green-sensitive growth ideas related to agriculture, trade, technology, infrastructure, and urban development with the requirements of poverty-sensitive growth. It finds that they may well cause a slow-down in the effectiveness of growth in reducing poverty. The main lesson therefore is that trade-offs are bound to exist; they increase the social costs of green growth and should be explicitly addressed. If not, green growth may not be good for the poor and the poor should not be asked to pay the price for sustaining growth while greening the planet. 2013-01-03T23:04:35Z 2013-01-03T23:04:35Z 2012-10 http://documents.worldbank.org/curated/en/2012/10/16835124/green-growth-good-poor http://hdl.handle.net/10986/12082 English en_US Policy Research Working Paper; No. 6231 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