What Are the Distributional Implications of Climate Policies? Recent Evidence from Developing Countries

Author
Daniele Malerba
Content Type
Working Paper
Institution
German Development Institute (DIE)
Abstract
To avoid catastrophic effects on natural and human systems, bold action needs to be taken rapidly to mitigate climate change. Despite this urgency, the currently implemented and planned climate mitigation policies are not sufficient to meet the global targets set in Paris in 2015. One reason for their current inadequate rollout is their perceived negative distributional effects: by increasing the price of goods, climate mitigation policies may increase both poverty and inequality. In addition, they may disrupt labour markets and increase unemployment, especially in sectors and areas dependent on fossil fuels. As a result, public protests in many countries have so far blocked or delayed the implementation of climate policies.
Topic
Climate Change, Development, Policy Implementation
Political Geography
Global Focus