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Ending extreme poverty has minimal effect on global greenhouse gas emissions

  1. "Ending Extreme Poverty: The Path to Economic Growth"
  2. "Analyzing Consumption Distributions for Economic Growth"
  3. "Calculating Consumption Growth to Alleviate Extreme Poverty"
  4. "Understanding the Relationship Between GDP Growth and Poverty Reduction"
  5. "Modeling GHG Emissions to End Extreme Poverty"
  6. "Exploring the Impact of Economic Growth on GHG Emissions"
  7. "Alternative Scenarios for Ending Extreme Poverty"

Economic growth is crucial to ending extreme poverty, according to the latest Poverty and Shared Prosperity Report of the World Bank for 2022. The report highlights the importance of consumption distributions in tracking extreme poverty and emphasizes the need for economic growth to lift individuals out of poverty.

Income and consumption distributions for 2022 are derived from harmonized income or expenditure surveys conducted by the World Bank. These distributions are extrapolated to 2022 and converted to consumption distributions using a specific equation. For countries with missing data, consumption is imputed using the median value of their respective income group and region.

To end extreme poverty, individuals need to reach a daily consumption threshold of $2.15 in 2017 purchasing-power-parity-adjusted dollars. This threshold is considered the international poverty line and is used as a target for poverty reduction. The report also considers poverty lines for lower-middle-income and upper-middle-income countries to provide a comprehensive analysis.

Calculating the consumption growth necessary to end extreme poverty involves considering both distribution-neutral and changing distribution scenarios. The report uses a random slope model to estimate the relationship between GDP per capita growth and consumption growth. It also factors in the impact of inequality on consumption growth rates.

Once the consumption growth rates are determined, the report calculates the GDP per capita growth needed to end extreme poverty. This involves converting consumption growth rates into GDP per capita growth rates. The analysis shows that GDP growth is essential for poverty alleviation, with different countries requiring varying levels of growth to reach the poverty reduction target.

The report also examines the relationship between economic growth and greenhouse gas (GHG) emissions. It models energy levels and energy GHG emissions based on GDP per capita and energy consumption data. The analysis reveals the impact of energy intensity and carbon intensity on GHG emissions.

Non-energy GHGs are also considered in the analysis, with the report finding no significant association between GDP growth and non-energy emissions. This highlights the importance of focusing on energy-related emissions in poverty alleviation efforts.

In conclusion, the report underscores the critical role of economic growth in ending extreme poverty and emphasizes the need to address consumption distributions, inequality, and GHG emissions in poverty reduction strategies. By understanding the complex interplay between economic growth and poverty alleviation, policymakers can develop more effective strategies to lift individuals out of extreme poverty.

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