The issue note focuses on one aspect of the social consequences of green growth, the labour market aspect, bearing in mind the importance of differences across countries, particularly by level of development, with the hope that it can provide some ideas for improving policy formation and analysis. It discusses the analytical frameworks that have informed past economic analyses of the potential impact of various green growth policies on labour markets, suggesting possible directions for future development of models to enable better analysis of potential impacts (Section 2). It then sketches some of the implications of the various frameworks for the likely distributional impacts of green growth policies (Section 3). In Section 4, evidence from countries’ experience with environmental policies is considered, along with empirical work on the likely future impacts of green growth policies. This leads to a discussion of how to mitigate potential adverse impacts of green growth policies on workers and households (Section 5).
