Dercon Stefan2014-06-302014-06-302014-06https://hdl.handle.net/10986/18822The developing world is experiencing substantial environmental change, and climate change is likely to accelerate these processes in the coming decades. Due to their initial poverty and their relatively high dependence on environmental capital for their livelihoods, the poor are likely to suffer most due to their low resources for mitigation and investment in adaptation. Economic growth is essential for any large-scale poverty reduction. Green growth, a growth process that is sensitive to environmental and climate change concerns, can be particularly helpful in this respect. We focus on the possible trade-offs between the greening of growth and poverty reduction, and we highlight the sectoral and spatial processes behind effective poverty reduction. High labor intensity, declining shares of agriculture in GDP and employment, migration, and urbanization are essential features of poverty-reducing growth. We contrast some common and stylized green-sensitive growth ideas related to agriculture, trade, technology, infrastructure, and urban development with the requirements of poverty-sensitive growth. We find that these ideas may cause a slowdown in the effectiveness of growth to reduce poverty. The main lesson is that trade-offs are bound to exist; they increase the social costs of green growth and should be explicitly addressed. If they are not addressed, green growth may not be good for the poor, and the poor should not be asked to pay the price for sustaining growth while greening the planet.en-USCC BY 3.0 IGOABSOLUTE POVERTYABSOLUTE TERMSADVERSE IMPACTSAGRICULTURAL GROWTHAGRICULTURAL PRODUCTIONAIR POLLUTIONAIR QUALITYALLOCATIONALTERNATIVE GROWTH PATHSALTERNATIVE INVESTMENTSCAPACITY BUILDINGCAPITAL COSTSCAPITAL INVESTMENTSCARBONCARBON ENERGYCLEAN AIR ACTCLEAN ENERGYCLEAN ENERGY ECONOMYCLEAN WATERCLEANER WATERCLIMATECLIMATE CHANGECLIMATE RESILIENCECLIMATIC CONDITIONSCOALCOMPARATIVE ADVANTAGECONSUMERSCONSUMPTION SMOOTHINGCOST OF FUELCOUNTERFACTUALDEFORESTATIONDEVELOPING COUNTRIESDEVELOPING WORLDDEVELOPMENT ECONOMICSDEVELOPMENT INDICATORSDEVELOPMENT POLICYDEVELOPMENT REPORTDISCOUNT RATEDISCOUNT RATESDISTRIBUTIONAL EFFECTSDROUGHTECONOMETRICSECONOMIC ACTIVITIESECONOMIC ACTIVITYECONOMIC ASSETSECONOMIC CHANGEECONOMIC COOPERATIONECONOMIC DEVELOPMENTECONOMIC DIVERSIFICATIONECONOMIC GROWTHECONOMIC GROWTH RATESECONOMIC INTEGRATIONECONOMIC OPPORTUNITIESECONOMIC PRODUCTIVITYECONOMIC RECOVERYECONOMIC RESEARCHECONOMIC REVIEW PAPERSECONOMICSEFFICIENCY GAINSELASTICITYEMISSIONSEMPIRICAL BASISENERGY PRODUCTIONENVIRONMENTALENVIRONMENTAL BENEFITSENVIRONMENTAL CHANGESENVIRONMENTAL COSTSENVIRONMENTAL DEGRADATIONENVIRONMENTAL IMPACTSENVIRONMENTAL PROBLEMSENVIRONMENTAL REGULATIONENVIRONMENTAL REGULATIONSEXPECTED RETURNSEXPORTSEXTERNALITIESEXTERNALITYEXTREME EVENTSEXTREME POVERTYEXTREME WEATHEREXTREME WEATHER EVENTSFARM WORKERSFARMERSFISHFISHERIESFOOD PRICESFOOD SECURITYFOOD SELF-SUFFICIENCYFOSSIL FUELSFRESH WATERFUEL PRICESGDPGDP PER CAPITAGLOBAL POVERTYGROWTH CONTEXTGROWTH MODELGROWTH POLICIESGROWTH PROCESSGROWTH PROSPECTSGROWTH RATESGROWTH THEORYHIGH GROWTHHIGH POVERTYHUMAN CAPITALHUMAN CAPITAL INVESTMENTHUMAN DEVELOPMENTHUMAN HEALTHIMPACT ON POVERTYIMPACTS OF CLIMATE CHANGEINCOMEINCOME GROWTHINCOME RISKINCOME SMOOTHINGINCREASE GROWTHINCREASING RETURNSINCREASING RETURNS TO SCALEINEQUALITYINFORMAL INSURANCEINFORMAL INSURANCE MECHANISMSINFRASTRUCTURE INVESTMENTINSURANCEINSURANCE MARKETINTERGENERATIONAL EQUITYINTERNATIONAL TRADEJOBSLABOR PRODUCTIVITYLIQUIDITYLIVELIHOOD SECURITYLIVING CONDITIONSLIVING STANDARDSLONG RUNLOW-INCOME COUNTRIESLUMP SUMMACROECONOMIC POLICIESMARKET FAILUREMARKET FAILURESMICROECONOMIC ANALYSISMIDDLE INCOME COUNTRIESMONETARY FUNDNATURAL CAPITALNATURAL RESOURCESNEGATIVE IMPACTOPPORTUNITY COSTOPPORTUNITY COSTSOUTPUT GROWTHPERSISTENT POVERTYPOLICY INSTRUMENTSPOLICY RESEARCHPOLITICAL ECONOMYPOLLUTIONPOORPOOR COUNTRIESPOOR HOUSEHOLDSPOOR POPULATIONSPOSITIVE EFFECTSPOTENTIAL OUTPUTPOVERTY ALLEVIATIONPOVERTY CHANGEPOVERTY DYNAMICSPOVERTY IMPACTPOVERTY PERSISTENCEPOVERTY REDUCTIONPOVERTY TRAPSPOVERTY-REDUCING GROWTHPRICE TAGPRIVATE GOODSPRO-POORPRO-POOR GROWTHPRODUCERSPRODUCTION PROCESSESPRODUCTIVE ASSETSPRODUCTIVITY GROWTHPROPERTY RIGHTSPUBLIC INVESTMENTPUBLIC SECTORRAPID GROWTHREAL INCOMEREMOTE AREASRETURNS TO SCALERICH COUNTRIESRISKS OF CLIMATE CHANGERURALRURAL AREASRURAL LIVELIHOODSRURAL POVERTYRURAL SETTINGSSAFETY NETSSANITATIONSAVINGSSECTOR ACTIVITIESSHADOW PRICESSKILLED LABORSKILLED WORKERSSMALLHOLDER AGRICULTURESOCIAL COSTSSOCIAL PROTECTIONSOIL DEGRADATIONSOIL EROSIONSPATIAL PROCESSESSTRUCTURAL CHANGESUSTAINABLE DEVELOPMENTTAXATIONTECHNOLOGICAL PROGRESSURBAN AREASURBAN POORWATER POLLUTIONWATER PRICESWATER PRICINGWEALTHWELFARE ECONOMICSWELFARE EFFECTSWELFARE GAINS10.1596/1813-9450-6936