We evaluate the relative performance of formal and informal sectors in India by looking into their productivity difference. Recognizing the intersectoral linkages in the economy, the competitive general equilibrium prices are computed; these signal the productivities. Our model synthesizes frontier analysis with the general equilibrium approach to generate shadow prices. The formal activities are found to be more productive than the informal. However, the informal services sector is as efficient as the formal one. There would be an overall productivity gain of 22% to the economy if factors were allocated to productive activities. The shadow prices from the model indicate that the formal capital and informal capital are scarce factors, while it has been the opposite for formal (regular) and informal (casual) labour. Formal labour is more productive than its informal counterpart; formal capital and informal capital are equally productive.Productivity, Formal and informal sectors, Competitive prices, General equilibrium,
Agriculture, Forestry and Other Land-use (AFOLU) are thought to play a vital role in long-term GHG emissions reduction, especially for their importance in non-CO2 emissions, bioenergy supply and carbon sequestration realized by afforestation. Several studies have noted potential adverse impacts of land-related emissions mitigation on food security, due to food price increases, but these studies have not disaggregated the individual aspects of land-related emissions mitigation that impact food security. Here, we show the extent to which three factors—non-CO2 emissions reduction, bioenergy production, and afforestation—change the food security and agricultural market conditions under 2 °C climate stabilization scenarios, using six global agro-economic models. The results show that afforestation, often implemented in the models by imposing carbon prices on land carbon stocks, causes the largest impacts on food security, followed by non-CO2 emissions policies, generally implemented as emissions taxes. Respectively, these measures put an additional 41.9 and 26.7 million people at risk of hunger in 2050. This study highlights the need for better coordination of emissions reduction and agricultural market management policy.
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