Editorial

INSIGHTS BLOGS

In India, New Solar Parks Can Either Uproot or Uplift Landless Workers

Citing the example of Pavagada Solar Park, this insights blog by Vishwajeet Poojary, Ashwini Hingne, and Ulka Kelkar highlights the risk of climate action exacerbating existing socio-economic inequities — as well as the opportunity presented by the transition in mitigating some of those harms.

India’s low carbon transition” to “India’s low-carbon development

Read this insights blog by Niyati Gupta and Steffi Olickal to learn how shifting to low-carbon technologies in the building and construction sector can be made equitable for the present construction workforce.

EXPERT NOTE

Macroeconomic Impacts of Long-Term Decarbonization in India: Implications for a Just Transition

India faces the dual challenge of advancing strong climate action while achieving its development goals. Moreover, the low-carbon transition will require a profound transformation of the Indian economy resulting in differing impacts on workers, regions, and communities.

Based on results from the India Energy Policy Simulator, this expert note by Deepthi Swamy and Varun Agarwal presents potential macroeconomic impacts — on economic growth, employment, and tax revenues — in a long-term decarbonization scenario, aligned to India’s 2070 net-zero emissions target, and analyzes the implications of these impacts for a just transition in India.

Linking macro- and micro-economic models for understanding distributional impacts of low-carbon development in India

India’s long-term decarbonization efforts require significant structural changes in the economy as we step up renewable energy and move to a low-carbon development pathway. The current literature discusses the macroeconomic and sectoral but not the distributional impacts of climate action. Since large disparities exist among India’s socioeconomic groups, the low-carbon transition will affect income and social groups differently. To address this gap, this technical note describes a methodology for quantifying household-level impacts across different income groups in India.

It uses the Global Income Distribution Dynamics (GIDD) framework in connection with the macroeconomic Green Economy Model for India (GEM-India). The climate policies are implemented through the macro model, the GEM, and the microsimulation redistributes the effects of the changes at the macroeconomic level amongst income groups and gender in terms of wages, poverty, employment and so forth. This technical note lays out the methodology to link climate policy implementation to household-level income and employment impacts, but not its results.