Abstract
This paper explores the links between economic growth and the impacts of climate change. Inclusive, pro-poor growth is central to the development of low-income countries. There is also a broad consensus that growth and development are important to reduce vulnerability to climate change. Growth does not automatically reduce vulnerability, only the right kind of growth does. The paper aims to develop a better understanding of what the “right kind of growth” may be. We find that many growth policies, such as investment in skills and access to finance, indeed reduce vulnerability to climate change. However, climate change calls for some adjustments in growth policy. In particular, investment in infrastructure and efforts to stimulate entrepreneurship and competitive markets must take more of a risk management perspective and recognise climate risks.
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Acknowledgements
The paper is based on a report that was commissioned from Vivid Economics by the UK Department for International Development. We are grateful to Malcolm Smart, Bipasha Chatterjee, Su-Lin Garbett-Shiels, Anthony Patt, John Ward, Alan Winters, two anonymous referees and the participants of a DFID seminar in May 2010. The views expressed in the paper are our own and do not necessarily reflect the policies of DFID. Bowen and Fankhauser also acknowledge support from the Grantham Foundation for the Protection of the Environment, as well as the Centre for Climate Change Economics and Policy, which is funded by the ESRC and Munich Re.
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Bowen, A., Cochrane, S. & Fankhauser, S. Climate change, adaptation and economic growth. Climatic Change 113, 95–106 (2012). https://doi.org/10.1007/s10584-011-0346-8
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DOI: https://doi.org/10.1007/s10584-011-0346-8