Elsevier

World Development

Volume 135, November 2020, 105082
World Development

Viewpoint, Policy Forum or Opinion
Sustainability and development after COVID-19

https://doi.org/10.1016/j.worlddev.2020.105082Get rights and content

Highlights

  • Before the pandemic progress toward some SDGs was lacking.

  • Post-pandemic here may be less financing for attaining the SDGs.

  • Affordable policies that meet several SDGs simultaneously are needed.

  • Fossil fuel and irrigation subsidy swaps to end water and energy poverty.

  • Tropical carbon tax to fund natural climate solutions.

Abstract

Developing countries are highly vulnerable to the COVID-19 pandemic, in part due to the lack of international support for ensuring progress towards the 17 Sustainable Development Goals (SDGs). Yet the mounting financial burden faced by all countries means that additional support is unlikely to be forthcoming in the near future. It is critical that developing countries find innovative policy mechanisms to achieve sustainability and development aims in a cost-effective manner. This requires identifying affordable policies that can yield immediate progress towards several SDGs together and aligns economic incentives for longer term sustainable development. We identify three policies that meet these criteria: a fossil fuel subsidy swap to fund clean energy investments and dissemination of renewable energy in rural areas; reallocating irrigation subsidies to improve water supply, sanitation and wastewater infrastructure; and a tropical carbon tax, which is a levy on fossil fuels that funds natural climate solutions. Such innovative and cost-effective policy mechanisms do not require substantial external support, and they foster greater progress towards achieving the SDGs in poorer economies.

Keywords

COVID-19
Developing countries
Natural climate solutions
Sustainable development goals (SDGs)
Sustainability

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