Reducing the impact of climate change on poor and vulnerable households is essential for hastening poverty reduction. In thinking about policies that do this, it is useful to apply the same hazard, exposure, and vulnerability framework that is often used to understand the physical impacts of climate change and add the non-climate benefits and costs to households that these policies can also bring. Policies that reduce hazards and/or vulnerability while bringing non-climate benefits should be prioritized where possible. However, some development policies that bring non-climate benefits, particularly in higher-income and higher growth countries, may increase emissions by enough to worsen future hazards, so their emissions impact needs to be managed with compensating actions. Policies that reduce the hazards faced by poor households are needed, and the non-climate cost of these policies on poor people should be minimized or compensated where it cannot be avoided.
Authors
- Disclosure Date
- 2024/10/17
- Disclosure Status
- Disclosed
- Doc Name
- Climate and Equity : A Framework to Understand Welfare Impacts and Guide Policy Action
- Pages
- 66
- Published in
- United States of America
- Series Name
- Prosperity Insight Series;
- Unit Owning
- People - Chief Economist Office (GGHCE)
- Version Type
- Final
- Volume No
- 1
Table of Contents
- A Framework to Understand Welfare Impacts and Guide Policy Action 1
- Prosperity Insight Series 1
- POVERTY 1
- A Framework to Understand Welfare Impacts and Guide Policy Action 3
- Executive Summary 1 6
- 1. Background 3 6
- 2. The Welfare Impacts of Climate 5 6
- 3. The Welfare Impacts of Climate Policies 23 6
- References 45 6
- EXECUTIVE SUMMARY 8
- BACKGROUND 10
- THE WELFARE IMPACTS OF CLIMATE 12
- 2.1. The Asset-Based Framework 12
- 2.2. The Role of Climate in Determining Household Welfare 14
- 2.3. The Impact of Climate Change on Welfare 19
- 2.4. Measuring the Welfare Impacts of Climate Change 20
- THE WELFARE IMPACTS OF CLIMATE POLICIES 30
- 3.1. The Impact of Climate Policies on Welfare 30
- 3.2. Policies with Minimal Trade-off 35
- 3.3. Addressing Trade-offs Reducing Vulnerability at a Cost to Income Growth 39
- 3.4. Addressing Trade-offs Reducing Hazards While Minimizing Welfare Costs 41
- 3.5. Cross-Border Issues and Climate Justice 50
- References 52
