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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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    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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