The Problems of Hunger Eradication and Poverty Reduction
Solutions to reduce GHG emissions can cause a significant impact on the goal of social economic development—typically the impact of policies to reduce emissions in AFOLU on food security. The current efforts in reducing poverty, curbing malnutrition and improving incomes are oriented toward increasing the rate of food production per capita in developing countries, while population growth will require increases in income. Therefore, a policy of increasing food production is needed to ensure sustainable development of the country. Accordingly, solutions to reduce emissions from the AFOLU sector if contributing to food production will contribute positively to this work. In contrast, there will be a number of solutions that may reduce food productivity, at least at the local scale.
In the energy sector, energy scarcity has prompted developed countries to seek
biofuel sources, displacing food production in agriculture. This has caused serious food shortages. These factors push up food prices, making the supply drop, and poor countries suffer the most severe consequences.
The Impact on Employment
In the case of policy applied to goods prices based on the corresponding GHG emissions created during their production and consumption, these policies may affect the total supply as well as the distribution of employment between sectors of the economy. For example, the commercialization of emissions to manage emissions from the energy sector of the USA has only generated a small amount of change in total employment over the long term, but the changes created by this policy have partly impacted on employees. Specifically, rising energy prices reduce the real wages of workers. Meanwhile, some people may choose to work fewer hours, or even stop working to switch to operating in other areas.
Although there is no major impact in the long term, the GHG emission reduction policies can cause a significant shift in the structure of labor between sectors of the economy. For example, the commercialization of emissions from the energy sector in the USA could reduce the number of carbonand energy-intensive industries in energy production or manufacturing of products consuming energy due to these industries facing the problems of increased production costs and reduced outputs. In particular, the energy industry, such as coal mining, oil and gas, may be most severely affected. In addition, emission reduction policies also affect employment in industries that use high-emission products, such as the transportation and chemical industries. In contrast, the policy will create new jobs in other sectors, particularly the manufacturing of machinery to produce energy without CO2 emissions, such as producing electricity from wind and solar power. Similarly, employment can be increased in sectors producing goods and services using less energy or less energy consumption products, in which the services sector may have the most significant increase.