PERI - Growing the Good and Shrinking the Bad: Output-Emissions Elasticities and Green Industrial Policy in Commodity-Dependent Developing Countries

by: Lynda Pickbourn, Janvier D. Nkurunziza, Léonce Ndikumana

June 18, 2022 | Research Report

View pdf

Headline: Green Industrial Policies in Commodity-Dependent Developing Countries
Intro Text: PERI researchers Lynda Pickbourn and Léonce Ndikumana, along with Janvier Nkurunziza, address a series of questions with respect to commodity dependent developing countries’ (CDDCs) efforts to integrate climate mitigation and adaptation measures into their policy frameworks. Most generally, they ask how can CDDCs meet their development goals while also fulfilling their commitments to climate change mitigation. They argue that CDDCs should embrace green industrial policies to position themselves as viable producers and exporters of green goods. Continued reliance on traditional commodities in an era of green transition may not be a viable long-term option.
Type of publication: Research Report
Research or In The Media: Research
Research Area: African Development Policy
Publication Date: 2022-06-18
View pdf
Authors:
- Add Authors: Lynda Pickbourn
- Add Authors: Janvier D. Nkurunziza
- Add Authors: Léonce Ndikumana
Show in Front Page Modules: No

Growing the Good and Shrinking the Bad: Output-Emissions Elasticities and Green Industrial Policy in Commodity-Dependent Developing Countries

>> Read paper published by United Nations Conference on Trade and Development (UNCTAD)

Abstract

This paper attempts to answer a series of questions that continue to hamstring the policy space of commodity dependent developing countries (CDDCs), particularly considering commitments made in the context of climate change adaptation and mitigation measures. First, is it possible for CDDCs to meet their development goals while also fulfilling their commitments to climate change mitigation? Is it possible to manage the commodity sector in a way that fosters growth without worsening environmental outcomes? Can CDDCs at their current development stage decouple economic growth and development from increasing emissions, environmental pollution, and resource depletion? While the international community needs to consider the challenges facing CDDCs as they attempt to move towards a low-carbon growth path, CDDCs should embrace green industrial policies to position themselves as viable producers and exporters of green goods. Continued reliance on traditional commodities in an era of green transition may not be a viable long-term option.