Exploring the economic case for early investment in climate change mitigation in middle-income countries: a case study of Johor Bahru, Malaysia

Abstract

The assumption that climate mitigation can only be afforded at a particular level of income is implicit in global climate negotiations. This suggests that middle-income countries may reach a tipping point in their development process where low-carbon investment becomes more viable. In order to avoid dangerous levels of climate change, this tipping point needs to be brought forward in time: upper-middle-income countries are already responsible for 37.8% of global CO 2 emissions. We explore the scope for large-scale investment in climate mitigation in Johor Bahru, a fast-growing industrial city in Malaysia. We find that the city could reduce per capita emissions by 10.0% by 2025, relative to 2014 levels, through cost-effective investments. If the returns could be recovered and reinvested in low-carbon measures, Johor Bahru could reduce per capita emissions by 35.2% by 2025, relative to 2014 levels. This result suggests that the tipping point may be a function of political will and institutional capacity as well as income. This has substantial implications for global climate policy discussions, particularly the opportunities and responsibilities of middle-income countries. If comparable savings can be delivered across cities in middle-income countries, this would equate to a reduction in global emissions of 6.3% with the exploitation of cost-effective options and 11.3% with the exploitation of cost-neutral options. Investing in economically attractive low-carbon measures could also provide cities in middle-income countries with an opportunity to build the political momentum and institutional capacities necessary for deeper decarbonization.

Energy Poverty and Low Carbon Just Energy Transition: Comparative Study in Lithuania and Greece

“…Due to the targets set by EU policy documents to achieve climate neutral society by 2050, it is especially important to address low carbon transition justice and energy poverty issues. There is debate among scientists with regards to energy poverty and low carbon energy transition signifying that climate change mitigation policies implemented in energy and related sector will not serve for economic and social development and energy poverty alleviation (Bowen et al, 2014;Colenbrander et al, 2016;Larson et al, 2015;Schwanen et al, 2011). Consequently, it was claimed that climate actions are not systematic and the costs of required actions are too high in relation to capacities to bear these costs (Bos & Gupta, 2019;Jewell & Cherp, 2020).…”

“…Therefore, Lazarou et al (2018), Kang et al (2020) and Zhang and Fujimori (2020) suggest additional actions as necessary to ensure technological innovation which is due to optimal technology portfolio selection along with financial and political incentives. In addition, early investments in climate change mitigation in middle-income countries need to be ensured (Colenbrander et al, 2016) as these will experience many problems (Bos & Gupta, 2019). It was also stressed out that innovation and economic diversification are considered key complementary measures to be implemented in preparation of successful climate mitigation strategies and penetration of renewable energy sources (RES) in energy markets (Edenhofer et al, 2011;Fuss et al, 2012;Massetti & Tavoni, 2011).…”

Does It Help Carbon Reduction in China? A Research Paper about the Mediating Role of Production Automation Based on the Carbon Kuznets Curve

“…What is certain is that the existence of the CKC as a phenomenon has been recognized by most studies. The current research results mainly include three types of explanations for the causes of inflection points in the process of a carbon emissions change: institutional adjustment in the process of development [6], technological change that drives development [7], and the impact of related events [8]. In addition, there are explanations for the phased changes in the environmental impact on economic development from the perspective of civic awareness and other cultural aspects [9].…”

Can We be Optimistic about Carbon Neutrality Goal of China? A Research about The Mediating Role of Production Automation Based on Carbon Kuznets Curve

“…What is certain is that the existence of CKC as a phenomenon has been recognized by most studies. Current research results mainly include three types of explanations for the causes of inflection points in the process of carbon emission change: institutional adjustment in the process of developmen [6], technological change that drives development [7], and the impact of related events [8]. In addition, there are explanations for the phased changes in the environmental impact of economic development from the perspective of civic awareness and other cultural aspects [9].…”