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Addressing the COVID-19 and climate crises: Potential economic recovery pathways and their implications for climate change mitigation, NDCs and broader socio-economic goals

Author

Listed:
  • Simon Buckle

    (OECD)

  • Jane Ellis

    (OECD)

  • Aimée Aguilar Jaber

    (OECD)

  • Marcia Rocha

    (OECD)

  • Brilé Anderson

    (OECD)

  • Petter Bjersér

Abstract

This paper provides decision-makers with a framework for prioritising different economic, social and environmental goals and analysing the options available to achieve them. To this end, it develops three stylised COVID-19 recovery pathways (“Rebound”, “Decoupling” and “Wider well-being”) that differ in the extent to which they encompass greenhouse gas (GHG) emission reductions and the integration of mitigation and wider well-being outcomes or, broadly equivalently, SDGs. A number of real-world examples of COVID-19 recovery measures in the surface transport and residential sectors were identified, and the paper maps these measures onto these three stylised pathways. The paper finds a wide divergence in the environmental and social impacts of COVID-19 recovery measures developed to date, with several countries putting in place measures that correspond to all three pathways. The nature and pace of economic recovery in different countries and in aggregate will have important implications for existing, updated and new Nationally Determined Contributions (NDCs) under the Paris Agreement, and the paper also highlights the possible impact of the COVID-19 recovery measures being put in place on NDCs– including on the ambition of both current and future NDCs. The paper concludes that it will be important for governments to improve their understanding of the impact of their recovery measures across multiple policy dimensions (economic, social, environmental) as well as across different time periods (short and long-term) and spatial scales.

Suggested Citation

  • Simon Buckle & Jane Ellis & Aimée Aguilar Jaber & Marcia Rocha & Brilé Anderson & Petter Bjersér, 2020. "Addressing the COVID-19 and climate crises: Potential economic recovery pathways and their implications for climate change mitigation, NDCs and broader socio-economic goals," OECD/IEA Climate Change Expert Group Papers 2020/04, OECD Publishing.
  • Handle: RePEc:oec:envaab:2020/04-en
    DOI: 10.1787/50abd39c-en
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    Cited by:

    1. Custodio, Henry M. & Hadjikakou, Michalis & Bryan, Brett A., 2023. "A review of socioeconomic indicators of sustainability and wellbeing building on the social foundations framework," Ecological Economics, Elsevier, vol. 203(C).
    2. Guo, Yuchen & Yuan, Yu, 2022. "Assessing the energy resources policy agenda: Evidence from China's green express policy," Resources Policy, Elsevier, vol. 79(C).

    More about this item

    Keywords

    beyond growth; Climate change; inequality; NDCs; net-zero economy; residential; SDGs; sustainable recovery; transport; wider well-being;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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