This Policy Brief draws on research carried out at the Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science, with the generous financial support of the Global Green Growth Institute (GGGI). It also draws on work by the first author commissioned by the World Bank and published in the World Bank’s policy research working paper series (Bowen, 2012). We are grateful for comments from Dimitri Zenghelis, Tim Foxon and Sheng Fulai. The authors, however, are entirely responsible for any errors or omissions and neither GGGI nor the World Bank should be assumed to endorse this Policy Brief’s recommendations for policy-makers.