Low-greenhouse-gas consumption strategies and impacts on developing countries

This working paper examines different low greenhouse gas (GHG) consumption strategies and their impacts on developing countries. The paper notes that many of the goods consumed in high-income countries are produced in low-income countries, which raises questions about the economic impact of reduced consumption on those countries. In other words, lowering consumption in developed countries could result in economic slow-down in export-heavy developing countries. The paper estimates that if all developed countries reduced their consumption, the average GDP loss could reach five per cent in the world's poorest countries. It reviews scenarios of low GHG consumption in developed countries with the UK selected for in-depth analysis using a multi-regional input-output model of the global economy. The paper also presents a case study assessing comparative GHG levels per kilogram of clothing across different countries.

The paper proposes three new measures of low GHG consumption that could bring both GHG and development benefits:

• purchasing from poor and low GHG intensity countries
  
• importing higher-cost, higher quality and value-added goods
  
• lowering GHG intensity of production in poor countries.

The report highlights the following priority areas for further research:

• shifting production location
  
• the degrees of equivalence in products made region to region, including appropriate units of measure
  
• the GHG implications of the marginal energy sources, practices and sources of intermediate goods
  
• how development affects the distribution of GDP growth in its capacity to benefit the relative reliance on the factor inputs of capital and labour
• possible social impacts, including the equitable distribution of income and child labour
  
• how income translates to livelihoods and development benefits, including a need for better metrics to support analysis.