Informal Emissions

Environmental regulations and their enforcement play a critical role in reducing emissions and their devastating effects on humanity and the environment. However, many developing countries have large informal sectors-accounting for more than 70 percent of total employment, that operate outside gover...

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Bibliographic Details
Main Author: Burgi, Constantin
Other Authors: Alkhuzam, Ahmad F., Joshi, Santosh Ram, Hovhannisyan, Shoghik
Format: eBook
Language:English
Published: Washington, D.C The World Bank 2022
Subjects:
Online Access:
Collection: World Bank E-Library Archive - Collection details see MPG.ReNa
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100 1 |a Burgi, Constantin 
245 0 0 |a Informal Emissions  |h Elektronische Ressource  |c Constantin Burgi 
260 |a Washington, D.C  |b The World Bank  |c 2022 
300 |a 27 pages 
653 |a Environmental Governance 
653 |a Fossil Fuel Consumption 
653 |a Environment 
653 |a Air Quality and Clean Air 
653 |a Pollution Management and Control 
653 |a Environmental Economics and Policies 
653 |a Environmental Risk 
653 |a Informal Work 
653 |a Climate Change Mitigation and Green House Gases 
653 |a Emission Accounting 
653 |a Greenhouse Gas Emmissions 
653 |a Informal Employers 
653 |a Informal Commercial Emissions 
653 |a Environmental Regulation 
700 1 |a Alkhuzam, Ahmad F. 
700 1 |a Joshi, Santosh Ram 
700 1 |a Hovhannisyan, Shoghik 
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028 5 0 |a 10.1596/1813-9450-10158 
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520 |a Environmental regulations and their enforcement play a critical role in reducing emissions and their devastating effects on humanity and the environment. However, many developing countries have large informal sectors-accounting for more than 70 percent of total employment, that operate outside government control. The presence of the informal sector could have detrimental consequences on the environment as informal firms do not comply with regulations, which could jeopardize the effectiveness of environmental policies. The paper uses reduced form equations to estimate the relationship between both CO2 and non-CO2 emissions per value added and the informal sector measured as the share of informal workers in total across countries. The estimates indicate that emissions per value added in the informal sector are higher as opposed to in the formal sector. At the sector level, higher informality is associated with lower CO2 emissions per value added only in manufacturing and other services sectors. In particular, a one percentage point increase in the share of informal workers in total sector employment reduces the CO2 emissions per value added by 1.44 percent in manufacturing and 1.773 percent in services. This implies that the magnitude of emissions per value added in the formal sector relative to the informal sector is ambiguous. Sector-specific estimations for non-CO2 emissions yield positive significant coefficients for agriculture, trade, mining, and utilities and a negative significant coefficient for manufacturing