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Can the Paris Deal Boost SDGs Achievement? An Assessment of Climate Mitigation Co-benefits or Side-effects on Poverty and Inequality

Author

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  • Lorenza Campagnolo

    (Fondazione Eni Enrico Mattei (FEEM))

  • Marinella Davide

    (Fondazione Eni Enrico Mattei (FEEM), Harvard University and Ca’ Foscari University)

Abstract

The paper analyses the synergies and trade-offs between emission reduction policies and sustainable development objectives. Specifically, it provides an ex-ante assessment that the impacts of the Nationally Determined Contributions (NDCs), submitted under the Paris Agreement, will have on the Sustainable Development Goals (SDGs) of poverty eradication (SDG1) and reduced income inequality (SDG10). By combining an empirical analysis with a modelling exercise, the paper estimates the future trends of poverty prevalence and inequality across countries in a reference scenario and under a climate mitigation policy with alternative revenue recycling schemes. Our results suggest that a full implementation of the emission reduction contributions, stated in the NDCs, is projected to slow down the effort to reduce poverty by 2030 (+2% of the population below the poverty line compared to the baseline scenario), especially in countries that have proposed relatively more stringent mitigation targets and suffer higher policy costs. Conversely, countries with a stringent mitigation policy experience a reduction of inequality compared to baseline scenario levels. If financial support for mitigation action in developing countries is provided through an international climate fund, the prevalence of poverty will be slightly reduced at the aggregate level (185,000fewer poor people with respect to the mitigation scenario), but the country-specific effect depends on the relative size of funds flowing to beneficiary countries and on their economic structure.

Suggested Citation

  • Lorenza Campagnolo & Marinella Davide, 2017. "Can the Paris Deal Boost SDGs Achievement? An Assessment of Climate Mitigation Co-benefits or Side-effects on Poverty and Inequality," Working Papers 2017.48, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2017.48
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    4. Rafael Herrera-Limones & Maria LopezDeAsiain & Milagrosa Borrallo-Jiménez & Miguel Torres García, 2021. "Tools for the Implementation of the Sustainable Development Goals in the Design of an Urban Environmental and Healthy Proposal. A Case Study," Sustainability, MDPI, Open Access Journal, vol. 13(11), pages 1-18, June.
    5. Perry, Keston K., 2020. "The New ‘Bond-age’, Climate Crisis and the Case for Climate Reparations: Unpicking Old/New Colonialities of Finance for Development within the SDGs," SocArXiv h9s2z, Center for Open Science.
    6. Baniya, Bishal & Giurco, Damien & Kelly, Scott, 2021. "Green growth in Nepal and Bangladesh: Empirical analysis and future prospects," Energy Policy, Elsevier, vol. 149(C).
    7. Osman Gulseven & Abdulrahman Elmi & Odai Bataineh, 2020. "The Divergence Between Industrial Infrastructure and Research Output among the GCC Member States," Papers 2004.11235, arXiv.org.

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    More about this item

    Keywords

    SDGs; Poverty; Inequality; CGE Model; Mitigation Policy; Paris Agreement;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • 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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