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The Millennium Development Goals call for reducing by half the proportion of people without sustainable access to safe drinking water. This goal was adopted in large part because clean water was seen as critical to fighting diarrheal disease, which kills 2 million children annually. There is compelling evidence that provision of piped water and sanitation can substantially reduce child mortality. However, in dispersed rural settlements, providing complete piped water and sanitation infrastructure to households is expensive. Many poor countries have therefore focused instead on providing community-level water infrastructure, such as wells. Various traditional child health interventions have been shown to be effective in fighting diarrhea. Among environmental interventions, handwashing and point-of-use water treatment both reduce diarrhea, although more needs to be learned about ways to encourage households to take up these behavior changes. In contrast, there is little evidence that providing community-level rural water infrastructure substantially reduces diarrheal disease or that this infrastructure can be effectively maintained. Investments in communal water infrastructure short of piped water may serve other needs and may reduce diarrhea in particular circumstances, but the case for prioritizing communal infrastructure provision needs to be made rather than assumed.
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This study examines the green transition's effects on labor markets using a task-based framework to identify jobs with tasks that contribute, or with the potential to contribute, to the green transition. Analyzing data from Brazil, Colombia, South Africa, the United Kingdom, and the United States, we find that the proportion of workers in green jobs is similar across AEs and EMs, albeit with distinct occupational patterns: AE green job holders typically have higher education levels, whereas in EMs, they tend to have lower education levels. Despite these disparities, the distribution of green jobs across genders is similar across countries, with men occupying over two-thirds of these positions. Furthermore, green jobs are characterized by a wage premium and a narrower gender pay gap. Our research further studies the implications of AI for the expansion of green employment opportunities. This research advances our understanding of the interplay between green jobs, gender equity, and AI and provides valuable insights for promoting a more inclusive green transition.
Climate --- Environmental Economics: Government Policy --- Global Warming --- Human Capital --- Job, Occupational, and Intergenerational Mobility --- Labor Productivity --- Natural Disasters and Their Management --- Occupational Choice --- Pollution Control Adoption and Costs • Distributional Effects • Employment Effects --- Promotion --- Skills
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We analyse the consequences of carbon price heterogeneity on households in The EU from 2010 to 2020. Accounting for both heterogeneity in carbon pricing across emission sources and the indirect effects from inter-industry linkages, we obtain two key findings. First, due to widespread carbon pricing exemptions, household burdens are lower than previously estimated. Second, lower-income groups are affected disproportionately, because they spend a smaller share of their expenditure on products that benefit from exemptions than their higher-income counterparts. Therefore, imposing uniform carbon prices both within and across countries would reduce carbon pricing regressivity on household expenditure in the EU. A global price would be most effective in this regard, as it would raise carbon prices embodied in EU imports. Further, because EU economies are open and apply higher average carbon prices than their trade partners, the domestic revenues exceed the costs embodied in EU household consumptions bundles. This increases the scope for reducing the burden of carbon pricing on lower-income households through revenue redistribution. Our results imply that the ongoing extension of carbon pricing to more sectors through the EU ETS II and the introduction of the EU’s CBAM should make carbon pricing less regressive, all else equal.
Environment and Development --- Environment and Trade --- Environmental Accounts and Accounting --- Environmental Economics: Government Policy --- Environmental Equity --- Fiscal Policies and Behavior of Economic Agents: Household --- Pollution Control Adoption and Costs • Distributional Effects • Employment Effects --- Population Growth --- Sustainability --- Taxation and Subsidies: Incidence
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As the financial crisis has spread through the world, the lack of real-time data has made it difficult to track its impact in developing countries. This paper uses a micro-simulation approach to assess the poverty and distributional effects of the crisis in the Philippines. The authors find increases in both the level and the depth of aggregate poverty. Income shocks are relatively large in the middle part of the income distribution. They also find that characteristics of people who become poor because of the crisis are different from those of both chronically poor people and the general population. The findings can be useful for policy makers wishing to identify leading monitoring indicators to track the impact of macroeconomic shocks and to design policies that protect vulnerable groups.
Achieving Shared Growth --- Chronically poor --- Distributional effects --- Economic growth --- Economic Theory & Research --- Food price --- Impact on poverty --- Incidence of poverty --- Income --- Income distribution --- Income inequality --- Income poverty --- Inequality --- Labor Policies --- Macroeconomic shocks --- Macroeconomics and Economic Growth --- Poor --- Poor people --- Poverty rates --- Poverty Reduction --- Regional Economic Development --- Rural --- Rural poverty --- Rural poverty rate --- Rural Poverty Reduction --- Social Protections and Labor --- Unemployment
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Measuring the poverty and distributional impact of the global crisis for developing countries is not easy, given the multiple channels of impact and the limited availability of real-time data. Commonly-used approaches are of limited use in addressing questions like who are being affected by the crisis and by how much, and who are vulnerable to falling into poverty if the crisis deepens? This paper develops a simple micro-simulation method, modifying models from existing economic literature, to measure the poverty and distributional impact of macroeconomic shocks by linking macro projections with pre-crisis household data. The approach is then applied to Bangladesh to assess the potential impact of the slowdown on poverty and income distribution across different groups and regions. A validation exercise using past data from Bangladesh finds that the model generates projections that compare well with actual estimates from household data. The results can inform the design of crisis monitoring tools and policies in Bangladesh, and also illustrate the kind of analysis that is possible in other developing countries with similar data availability.
Achieving Shared Growth --- Counterfactual --- Distributional effects --- Economic Theory & Research --- Employment status --- Global markets --- Household heads --- Household income --- Household survey --- Impact on poverty --- Income --- Income distribution --- Income poverty --- Inequality --- Macroeconomic shocks --- Macroeconomics and Economic Growth --- Poor --- Poor rural households --- Poverty line --- Poverty rates --- Poverty Reduction --- Regional Economic Development --- Rural --- Rural areas --- Rural Poverty Reduction
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This paper analyzes changes in agricultural production and economic welfare of farmers in rural Peru resulting from a large irrigation infrastructure rehabilitation project. The analysis uses a ten-year district panel and a spatial regression discontinuity approach to measure the causal effect of the intervention. While general impacts are modest, the analysis shows that the project is progressive - poor farmers consistently benefit more than non-poor farmers. Farmers living in districts with a rehabilitated irrigation site experience positive labor dynamics, in terms of income and agricultural jobs. Poor farmers increase their total income by more than USD 220 per year compared with the control group, while rich farmers do not experience such an income gain. The results also show crop specialization patterns in the economic status of farm households; poorer farm households increase their production of staple crops, such as beans and potatoes, while non-poor beneficiary farmers cultivate more industrial crops. Findings from this evaluation have important implications for pro-poor policy design in the agricultural sector.
Agricultural production --- Agricultural products --- Agricultural sector --- Agriculture --- Crop diversification --- Crops & Crop Management Systems --- Distributional effects --- Farm households --- Income --- Inequality --- Insurance --- Irrigation --- Labor Policies --- Macroeconomics and Economic Growth --- Poor --- Poor farmers --- Poor policy --- Poverty line --- Poverty Reduction --- Regional Economic Development --- Rural --- Rural areas --- Rural development --- Rural infrastructure --- Rural infrastructure development --- Rural Poverty Reduction --- Social Protections and Labor
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Rich countries' agricultural trade policies are the battleground on which the future of the WTO's troubled Doha Round will be determined. Subject to widespread criticism, they nonetheless appear to be almost immune to serious reform, and one of their most common defenses is that they protect poor farmers. The authors' findings reject this claim. The analysis uses detailed data on farm incomes to show that major commodity programs are highly regressive in the United States, and that the only serious losses under trade reform are among large, wealthy farmers in a few heavily protected subsectors. In contrast, analysis using household data from 15 developing countries indicates that reforming rich countries' agricultural trade policies would lift large numbers of developing country farm households out of poverty. In the majority of cases these gains are not outweighed by the poverty-increasing effects of higher food prices among other households. Agricultural reforms that appear feasible, even under an ambitious Doha Round, achieve only a fraction of the benefits for developing countries that full liberalization promises, but protect U.S. large farms from most of the rigors of adjustment. Finally, the analysis indicates that maximal trade-led poverty reductions occur when developing countries participate more fully in agricultural trade liberalization.
Agricultural Liberalization --- Agricultural Products --- Agricultural Support --- Debt Markets --- Distributional Effects --- Economic Policies --- Economic Theory and Research --- Emerging Markets --- Farm Households --- Farm Income --- Farm Incomes --- Farm Sector --- Finance and Financial Sector Development --- Financial Literacy --- Food Prices --- Free Trade --- Health, Nutrition and Population --- Household Survey --- Income --- International Economics & Trade --- Macroeconomics and Economic Growth --- Political Economy --- Poor --- Poor Countries --- Poor Farmers --- Population Policies --- Post-Reform --- Poverty --- Poverty Reduction --- Private Sector Development --- Pro-Poor Growth --- Rural --- Rural Development --- Rural Poverty Reduction --- Rural Sectors
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Reducing transport sector emissions is an important pillar of the green transition. However, the transition to electric vehicles (EV) portends major changes in vehicle manufacturing activity, on which many livelihoods in Europe depend. Using the heterogeneity across European countries in the speed of transition to EV production and variation in sectoral and regional exposure to the automotive sector, this paper offers early evidence of the labor market implications of the EV transition. Our results suggest that the transformation of the auto sector is already having an adverse impact on employment in the affected sectors and regions, which can be expected to grow at least in the near term. Many of the affected workers will be able to retire and our analysis suggests that those who will have to transition to new “greener” jobs have a fair chance to do so when compared to other workers in the manufacturing sector. Furthermore, we find evidence that active labor market policies, specifically training, can help to reduce the adjustment costs for the affected workers.
Macroeconomics --- Economics: General --- Labor --- Exports and Imports --- Industries: Automobile --- Environmental Conservation and Protection --- Employment --- Unemployment --- Wages --- Intergenerational Income Distribution --- Aggregate Human Capital --- Aggregate Labor Productivity --- Pollution Control Adoption and Costs • Distributional Effects • Employment Effects --- Trade: General --- Mobility, Unemployment, and Vacancies: General --- Demand and Supply of Labor: General --- Automobiles --- Other Transportation Equipment --- Related Parts and Equipment --- Economic & financial crises & disasters --- Economics of specific sectors --- Labour --- income economics --- International economics --- Transport industries --- Climate change --- Exports --- International trade --- Employment rate --- Labor markets --- Automobile industry --- Economic sectors --- Currency crises --- Informal sector --- Economics --- Economic theory --- Labor market --- Automobile industry and trade --- Climatic changes --- Income economics
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While the near-term priorities are national defense and macroeconomic stabilization, gradually incorporating climate change considerations into policy design will become increasingly important after the war and into the long term. As regards climate change adaptation, investments will need to be made with a view to maintain long-term debt sustainability. Policy reforms will also be needed to move to a low-emissions economy to deliver international commitments and achieve the broader objective of European Union accession. Potential exists to deliver on climate priorities alongside implementing recovery and reconstruction efforts, while maintaining macroeconomic stability, and ensuring social protection and equity.
Climate change --- Climate finance --- Climate --- Climatic changes --- Debt Management --- Debt --- Emissions trading --- Environment --- Environmental Conservation and Protection --- Environmental Economics --- Environmental economics --- Environmental Economics: General --- Environmental Economics: Government Policy --- Environmental policy & protocols --- Environmental Policy --- Environmental policy --- Fiscal Policies and Behavior of Economic Agents: General --- Global Warming --- Green finance / sustainable finance --- Greenhouse gas emissions --- Greenhouse gases --- International agencies --- International Agreements and Observance --- International Economics --- International institutions --- International organization --- International Organizations --- Monetary economics --- Monetary Policy --- Monetary policy --- Money and Monetary Policy --- Natural Disasters and Their Management --- Pollution Control Adoption and Costs • Distributional Effects • Employment Effects --- Sovereign Debt --- Ukraine
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Belgium’s current policies fall short of achieving its climate targets and promoting emissions reductions at limited economic costs. We recommend that domestic carbon pricing form the centerpiece of an emissions reduction package, as pricing promotes mitigation at the lowest economic cost, can be phased in as international energy prices fall, and generates revenue to compensate vulnerable households and reduce taxes on productive activities. Sectoral policies, such as subsidy-tax schemes to promote low emissions vehicles, should reinforce carbon pricing and regional efforts, while the social protection system can be made more efficient and environmentally friendly by switching from energy subsidies to income-based support. Belgium should also promote dialogue at the EU-level to harmonize ETS prices and include all sectors under a single trading scheme.
Money and Monetary Policy --- International Economics --- Environmental Economics --- Environmental Conservation and Protection --- Taxation --- Investments: Energy --- Industries: Energy --- Monetary Policy --- International Agreements and Observance --- International Organizations --- Taxation and Subsidies: Externalities --- Redistributive Effects --- Environmental Taxes and Subsidies --- Fiscal Policies and Behavior of Economic Agents: General --- Pollution Control Adoption and Costs • Distributional Effects • Employment Effects --- Climate --- Natural Disasters and Their Management --- Global Warming --- Electric Utilities --- Hydrocarbon Resources --- Environmental Economics: Government Policy --- Monetary economics --- International institutions --- Environmental economics --- Climate change --- Public finance & taxation --- Investment & securities --- Petroleum, oil & gas industries --- Monetary policy --- International organization --- Greenhouse gas emissions --- Environment --- Carbon tax --- Taxes --- Electricity --- Commodities --- Natural gas sector --- Economic sectors --- International agencies --- Emissions trading --- Greenhouse gases --- Environmental impact charges --- Electric utilities --- Gas industry --- Belgium
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