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Macroeconomic exposure of developing economies to low-carbon transition

Author

Listed:
  • Magacho, Guilherme
  • Espagne, Etienne
  • Godin, Antoine
  • Mantes, Achilleas
  • Yilmaz, Devrim

Abstract

The low-carbon transition is a specific type of rapid structural change where low-emission industries grow and high-emission industries decline due to deliberate policies, changing preferences and technological change. Developing countries’ macroeconomic exposure to this transition depends upon their reliance on carbon-intensive industries as a source of foreign currency, fiscal revenue, employment and wage income. Identifying these different dimensions of countries’ exposure is important because different green policies need to be applied in different contexts, and the results of these policies will be more or less effective according to countries’ idiosyncrasies.

Suggested Citation

  • Magacho, Guilherme & Espagne, Etienne & Godin, Antoine & Mantes, Achilleas & Yilmaz, Devrim, 2023. "Macroeconomic exposure of developing economies to low-carbon transition," World Development, Elsevier, vol. 167(C).
    • Handle: RePEc:eee:wdevel:v:167:y:2023:i:c:s0305750x23000499
    DOI: 10.1016/j.worlddev.2023.106231
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    Cited by:

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    2. Giovanni Dosi & Federico Riccio & Maria Enrica Virgillito, 2024. "Decarbonisation and Specialisation Downgrading: the double harm of GVC Integration," LEM Papers Series 2024/17, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    3. Haiyong Jiang & Yinghui Han & Yue Wang & Zhenyu Chen, 2023. "Dynamic Nonlinear Relationship between Digital Transformation, Green Transformation in Manufacturing Industry and Labor Structure: Evidence from Panel VAR Analysis," Review of Economic Assessment, Anser Press, vol. 2(3), pages 16-36, October.
    4. Luca TAUSCH & Guilherme MAGACHO, 2024. "Challenges in the Transition to a Low-Carbon Economy for Developing Countries: Estimating Capital-Use Matrices and Imported Needs," Working Paper 3f15bd28-99b0-42ff-863c-4, Agence française de développement.
    5. Shujuan Ding & Zhenyu Fan, 2024. "Spatiotemporal Evolution and Obstacle Factor Analysis of Coupling Coordination Between Economic Resilience and Green, Low-Carbon Development in China," Sustainability, MDPI, vol. 16(24), pages 1-34, December.
    6. Luca Tausch & Jeffrey Althouse, 2024. "Towards a theory of ecologically unequal exchange (EUE) as a multi-tiered hierarchy," FMM Working Paper 100-2024, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    7. Julien CALAS & Antoine GODIN & Paul Hadji-Lazaro & Pamela SEKESE & Andrew SKOWNO, 2023. "Socioeconomic and spatially-explicit assessment of Nature-related risks: the case of South Africa," Working Paper 199e7bd0-7dfd-4a54-bc1d-9, Agence française de développement.

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    More about this item

    Keywords

    Low-carbon transition; Macroeconomic vulnerabilities; Country risk; Input-output;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models

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