Porto, Guido2013-01-032013-01-032012-10https://hdl.handle.net/10986/12079Green growth policies confront firms and workers with adjustments that may create welfare costs for different segments of the population and cause reductions in near-term actual versus potential gross domestic product. There is little evidence on the cost of adjustment to climate change measures, and only limited evidence for more general environmental policies, especially in developing countries. Therefore, this paper canvasses the research on adjustment costs to trade policies to draw analogies and highlight differences compared with the potential impacts of green growth policies. Trade policies affect prices and work directly on technology choice. In the presence of adjustment costs, firms may experience impacts on wages, employment, and incentives to adopt alternative technologies. Both types of trade policy impacts may be amplified by technology availability and credit constraints. Many green growth policies are likely to work via the same mechanisms, that is, taxes on emissions or changes in technology requirements. However, trade liberalization is typically seen as offering higher total incomes, albeit with winners and losers. Green growth policies are thought of as welfare-enhancing at the collective level but may not be income-enhancing at the individual level. This implies much more difficulty in measuring the potential gains associated with green growth policies.en-USCC BY 3.0 IGOADJUSTMENT ASSISTANCEADJUSTMENT COSTADJUSTMENT COSTSADJUSTMENT POLICIESADJUSTMENT PROCESSAGGREGATE INCOMEAGRICULTUREAVERAGE WAGEAVERAGE WAGESBARGAINING POWERBENCHMARKCAPITAL ACCUMULATIONCAPITAL MARKETCAPITAL MARKETSCAPITAL STOCKCARBONCARBON ENERGYCHILD LABORCLIMATE CHANGECOALCODES OF CONDUCTCOMPARATIVE ADVANTAGECOMPETITIVE ADVANTAGECOMPLIANCE COSTSCONSUMERSCREDIT CONSTRAINTSDAMAGESDEADWEIGHTDEADWEIGHT LOSSDEMOGRAPHICDEMOGRAPHICSDEVELOPING COUNTRIESDEVELOPING ECONOMIESDEVELOPMENT ECONOMICSDEVELOPMENT POLICYDISCOUNT RATEDISCOUNTED VALUEDISPLACED WORKERSDRIVERSEARNINGECONOMETRICSECONOMIC ACTIVITYECONOMIC RESEARCHEFFICIENCY WAGESELASTICITYEMISSIONSEMPIRICAL EVIDENCEEMPLOYEEEMPLOYMENT EFFECTSEMPLOYMENT LEVELSEMPLOYMENT RESEARCHEMPLOYMENT SUBSIDIESEMPLOYMENT TURNOVERENERGY EFFICIENCYENVIRONMENTALENVIRONMENTAL DAMAGESENVIRONMENTAL POLICIESENVIRONMENTAL QUALITYENVIRONMENTAL RESOURCESENVIRONMENTAL STANDARDSEQUILIBRIUMEXPLOITATIONEXPORT MARKETEXPORT-ORIENTED INDUSTRYEXPORTSEXTERNALITIESEXTERNALITYFACTOR MARKETSFACTORS OF PRODUCTIONFAIR TRADEFIRING COSTSFIRM SURVEYSFIXED CAPITALFIXED INVESTMENTFOSSIL FUELSFREE TRADEFRICTIONAL UNEMPLOYMENTGDPGENERAL EQUILIBRIUMGENERAL EQUILIBRIUM MODELSGROWTH MODELSGROWTH POLICIESGROWTH POLICYHOME COUNTRYHOUSEHOLD INCOMEHOUSEHOLD SURVEYHOUSEHOLD SURVEYSHUMAN CAPITALHUMAN RIGHTSHUMAN RIGHTS ISSUESIMPROVED WORKING CONDITIONSINCOMEINCOME INEQUALITYINCOMESINDUSTRY WAGEINPUT PRICESINSURANCE MARKETSINTANGIBLEINTERNATIONAL TRADEINVESTMENT CLIMATEIRREVERSIBILITYJOB DISPLACEMENTJOB TRAININGJOBSLABOR ADJUSTMENTLABOR ADJUSTMENT COSTSLABOR ALLOCATIONLABOR ALLOCATIONSLABOR DEMANDLABOR DISPLACEMENTLABOR FORCELABOR MARKETLABOR MARKET ADJUSTMENTLABOR MARKET FLEXIBILITYLABOR MARKET POLICIESLABOR MARKET REFORMLABOR MARKET REFORMSLABOR MARKET RIGIDITIESLABOR MARKET TURNOVERLABOR MARKETSLABOR MOBILITYLABOR PRODUCTIVITYLABOR REALLOCATIONLABOR REGULATIONSLABOR SUPPLYLABOR UNIONSLABOURLABOUR ADJUSTMENTLABOUR MARKETLABOUR MARKET REGULATIONSLABOUR MOVEMENTSLONG-RUN EMPLOYMENTMARGINAL PRODUCTMARGINAL PRODUCTIVITYMARKET DISTORTIONMARKET DISTORTIONSMARKET LIBERALIZATIONMIDDLE-INCOME COUNTRIESMINIMUM WAGEMINIMUM WAGESNEW MARKETNEW MARKET OPPORTUNITIESNOMINAL WAGESOLDER WORKERSOPTIMIZATIONOPTION VALUEOUTPUTSPOLICY MAKERSPOLITICAL ECONOMYPOLLUTIONPOLLUTION TAXPOTENTIAL GROSS DOMESTIC PRODUCTPRESENT VALUEPREVIOUS SECTIONPRODUCERSPRODUCTION FUNCTIONPRODUCTION WORKERPRODUCTIVE ACTIVITIESPRODUCTIVE FIRMSPRODUCTIVITYPRODUCTIVITY GAINPRODUCTIVITY GAINSPROFIT MAXIMIZATIONPROFIT SHARINGPROTECTED INDUSTRIESPROTECTED INDUSTRYQUOTASRATIONAL EXPECTATIONSREAL WAGEREAL WAGESRENTSSAFETYSAFETY NETSELLING PRICESKILL PREMIUMSKILL PREMIUMSSKILL UPGRADINGSOCIAL BENEFITSSTARTUPSTRUCTURAL ADJUSTMENTSUSTAINABLE DEVELOPMENTTARGETED EMPLOYMENT SUBSIDYTAXATIONTERMS OF TRADETRADE LIBERALIZATIONTRADE POLICIESTRADE POLICYTRADE REFORMSTRAINING COSTSUNEMPLOYEDUNEMPLOYED WORKERUNEMPLOYED WORKERSUNEMPLOYMENTUNEMPLOYMENT INSURANCEUNEMPLOYMENT INSURANCE PROGRAMUNEMPLOYMENT TRANSITIONUNPROTECTED SECTORUNSKILLED LABORUNSKILLED WORKERSURUGUAY ROUNDUTILITY FUNCTIONVALUE OF OUTPUTVERTICAL INTEGRATIONVOLATILITYWAGE BARGAININGWAGE DIFFERENTIALSWAGE GROWTHWAGE INCREASEWAGE INCREASESWAGE INEQUALITYWAGE LEVELSWAGE PREMIUMWAGE PREMIUMSWAGE STRUCTUREWAGE SUBSIDIESWAGESWELFARE EFFECTSWELFARE GAINSWORKERSWORKING CONDITIONSWORLD TRADEWTOYOUNG WORKERSWorld Bankhttps://doi.org/10.1596/1813-9450-6237