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Effect of climate policies on labor markets in developing countries : review of the evidence and directions for future research

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Listed:
  • Hafstead,Marc Andrew Christian
  • Williams III,Roberton C.
  • Golub,Alexander Alexandrovich
  • Meijer,Siet
  • Narayanan,Badri G.
  • Nyamweya,Kevin
  • Steinbuks,Jevgenijs

Abstract

This study surveys one of the critical welfare aspects of contemplating climate policies in developing countries and their potential effect on workers and labor markets. The existing body of evidence finds that climate policies will likely cause a significant reduction of jobs in fossil-fuel industries. These industries make up a relatively small share of total employment, even in fossil-fuel-intensive countries. Therefore, the effect on aggregate employment will likely be small, especially over the long term, since there will be offsetting gains in other industries. However, most of the literature ignores the key features of developing country labor markets and may significantly misrepresent the dynamics of labor market adjustment to climate policies.

Suggested Citation

  • Hafstead,Marc Andrew Christian & Williams III,Roberton C. & Golub,Alexander Alexandrovich & Meijer,Siet & Narayanan,Badri G. & Nyamweya,Kevin & Steinbuks,Jevgenijs, 2018. "Effect of climate policies on labor markets in developing countries : review of the evidence and directions for future research," Policy Research Working Paper Series 8332, The World Bank.
    • Handle: RePEc:wbk:wbrwps:8332
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    Cited by:

    1. Noe Reidt, 2021. "Climate Policies and Labor Markets in Developing Countries," CER-ETH Economics working paper series 21/351, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    2. Andualem Telaye Mengistu & Pablo Benitez & Seneshaw Tamru & Haileselassie Medhin & Michael Toman, 2019. "Exploring Carbon Pricing in Developing Countries: A Macroeconomic Analysis in Ethiopia," Sustainability, MDPI, vol. 11(16), pages 1-21, August.
    3. Liang Li & Bangzhu Zhu & Xiahui Che & Huaping Sun & Meixuen Tan, 2021. "Examining Effect of Green Transformational Leadership and Environmental Regulation through Emission Reduction Policy on Energy-Intensive Industry’s Employee Turnover Intention in China," Sustainability, MDPI, vol. 13(12), pages 1-21, June.

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