This report examines the impact of international mitigation policies on
economic opportunities in developing countries. Understanding these
impacts is important: so developed country policymakers can take these
effects into account in their decision making; to help inform developing
countries' negotiating strategies; and so developing countries can
start now to position themselves to take advantage of new opportunities
or protect themselves from new risks arising from mitigation.
A range of mitigation policies are considered, including: carbon taxes,
border tax adjustments, emissions trading schemes, the Clean Development
Mechanism, REDD+, liberalisation of trade in environmental goods and
services, carbon labelling and technology transfer mechanisms. The
potential economic impacts of these different policies are assessed, by
examining the various transmission mechanisms, such as trade, foreign
direct investment, aid and financial flows, rates of technological
innovation and technology transfer, changes in consumer preferences, and
private sector responses.
Three broad scenarios are developed, based on:
- high levels of international cooperation,
- moderate levels of international cooperation, and
- fragmented bilateral and regional cooperation.
Each scenario consists of different packages of mitigation policy
outcomes, in order to facilitate an illustrative assessment of the
overall impact of different mitigation policy combinations on economic
prospects in developing countries.
Overseas Development Institute, London, UK, 77 pp.
Growth in a carbon constrained global economy.