Resource

Case Study

Policies for Low Carbon Growth

This paper reviews the low carbon growth and climate change response strategies of a range of countries with differing economic characteristics to draw out the policy implications for developing countries at different stages of development. The first part of the report draws on case studies and other relevant literature to identify possible policy lessons; here the study uses a selection of high-, middle- and low-income countries to conduct a balanced review of low carbon growth policies. The second part discusses the extent to which low carbon growth challenges traditional growth theory and policies. As argued, achieving low carbon growth clearly has major implications for policy, and implies considerable adjustment of the traditional growth agenda. However, low carbon growth does not present a major challenge to traditional growth theory; it simply requires the internalisation of the environmental costs of growth through the appropriate pricing of goods and services. This can be achieved through a range of mitigation policies, such as taxes on the production or consumption of carbon intensive goods. Furthermore, it is argued that many developing countries have struggled to achieve any kind of sustained growth, and have contributed little to the problem of climate change. Hence, the question for these countries will be how to achieve growth at all, particularly in light of climate change and international mitigation policies and the impact these are having on their economies. It is suggested that developing countries will need to find climate resilient growth strategies (i.e. growth strategies which are achievable despite the impact of climate change), and identify and manage opportunities (such as new markets) and risks (such as trade barriers) that arise from international mitigation efforts, in order to achieve growth in future.
URL:
http://www.odi.org.uk/resources/download/4542-full-report.pdf
Authors:
Ellis, K., Baker, B. and Lemma, A.
Published:
2009
Publisher:
ODI

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