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Why Do Chinese and Indian Positions on Climate Differ? Labor Surplus Absorption as a Key Factor

Author

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  • PIERRE BERTHAUD

    (University of Grenoble Alpes, Grenoble INP, Centre de recherche en économie de Grenoble (CREG) Institute of Engineering University Grenoble Alpes, France)

  • YANN FONTANA

    (University of Grenoble Alpes, Grenoble INP, CREG Institute of Engineering University Grenoble Alpes, France)

  • LAËTITIA GUILHOT

    (University of Grenoble Alpes, Grenoble INP, CREG Institute of Engineering University Grenoble Alpes, France)

Abstract

During international negotiations for the Rio Earth Summit of 1992, coalitions made up of countries from the Global South took shape, only to break up gradually over time. The climate positions of two leading emerging powers, the People’s Republic of China and India, have increasingly drifted apart from each other since 2010. This paper seeks to account for this drift by relying on structural factors. The analytical framework proposed here relies on three structural determinants of development: factor endowments, sector specialization, and labor surplus absorption potential. These determinants are complemented by a carbon variable to account for sustainability. This framework reveals a triangle of incompatibility between development, labor surplus absorption, and sustainability that highlights how the People’s Republic of China now has sufficient leeway to engage in more ambitious sustainable policies, while India still faces the mutual incompatibility of either pushing forward with economic development or committing to a sustainable agenda.

Suggested Citation

  • Pierre Berthaud & Yann Fontana & Laã‹Titia Guilhot, 2024. "Why Do Chinese and Indian Positions on Climate Differ? Labor Surplus Absorption as a Key Factor," Asian Development Review (ADR), World Scientific Publishing Co. Pte. Ltd., vol. 41(02), pages 171-192, September.
    • Handle: RePEc:wsi:adrxxx:v:41:y:2024:i:02:n:s0116110524500112
    DOI: 10.1142/S0116110524500112
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    Keywords

    climate negotiations; India; labor surplus absorption; People’s Republic of China; sustainable development trilemma;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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