Crecimiento verde inclusivo e informalidad

Abstract

This paper analyzes informality and inclusive green growth, with emphasis on the mining, agricultural, forestry, construction and waste management sectors. Informality is estimated for productive units from the point of view of labor, business, environmental and title regulations. Inclusive green growth is measured by mixing the methodologies used to estimate the WEF Sustainable Growth Index, and the EPI Index, of Yale University. In addition to making evident the very high informality rates in the selected sectors, the main conclusion of this work is a positive relationship between formality and good environmental performance. This relationship is robust and significant, even after controlling for observable variables such as size, sector, geography and education (as income proxy). Although it is not possible to perform a causation exercise, our results suggest that the relationship between the two variables is mainly explained by common determinants. Under this understanding and after conducting an analysis of simultaneous equations to establish the determinants of environmental and labor performance, we formulate some policy recommendations oriented to control both problems. We summarize them in seven groups: 1) Associativity, sponsorship and increase in the production scale; 2) Additional benefits to labor and environmental responsibility with products such as environmental seals; 3) Incentives for the entry of productive units to the formalization ladder; 4) Simplification of compliance with environmental regulations; 5) Comprehensive programs to support small producers 6) Quasiformal institutions for subsistence workers and 7) Monitoring and control of illegal / criminal activities.