Public Disclosure Authorized 10438 A Review of Human Development and Environmental Outcomes Diego Ambasz Anshuman Gupta Harry Anthony Patrinos Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Policy Research Working Paper Education Global Practice May 2023 Policy Research Working Paper 10438 Abstract As climate change and its impact on the physical environment become increasingly evident, its relationship with human development outcomes is becoming a key area of research. While numerous researchers have studied the ways in which the immediate environment affects human capital, literature on the impact of human capital on the environment remains scarce. Despite the heightened interest in understanding the linkages between human development outcomes and environmental factors, most studies of this relationship are theoretical, correlational, or observational, thus lacking causality. This paper surveys the literature and explores how evidence can be established for policies focusing on human development and environmental outcomes. The paper presents a conceptual framework incorporating direct and indirect pathways – including cognitive and noncognitive factors through which improved education can lead to better environmental behaviors. Of the 31 studies reviewed, a majority (27 studies) present observational findings, while only a few (four studies, or 13 percent) use a quasi-experimental design to establish causality. The few causal studies suggest that it is possible to change attitudes but more difficult to change environmental behaviors. The review raises the key question of whether policies aimed at improving climate change awareness through education can effectively produce long-lasting changes in pro-environmental behaviors. Much more work is needed to advance understanding of how human capital policy can help mitigate or promote adaptation to climate change. This paper is a product of the Education Global Practice. It is part of a larger effort by the World Bank to provide open access to its research and make a contribution to development policy discussions around the world. Policy Research Working Papers are also posted on the Web at http://www.worldbank.org/prwp. The authors may be contacted at hpatrinos@worldbank.org. The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent. Produced by the Research Support Team A Review of Human Development and Environmental Outcomes Diego Ambasz Anshuman Gupta Harry Anthony Patrinos1 World Bank World Bank World Bank JEL: Q54; I25 Keywords: Education; human capital; climate change 1 Paper prepared under the Advancing the Human Development Agenda within the EU’s Green Deal (ID: P175948). Thanks to Ana-Maria Boromisa, Karla J. Mcevoy, and Maria Ustinova for comments. All errors are our own and the views expressed here are not to be attributed to the World Bank Group. 1. Introduction Environmental conditions, such as those pertaining to natural resources and climate, are intrinsically linked to human development outcomes in numerous ways. For example, exposure to poor air and water quality among populations is linked to birth defects and cognitive deficits in children (Ferguson et al. 2013). Similarly, workers in mining industries are known to have lower life expectancy due to exposure to heavy metals and toxic environmental conditions, and children living in more polluted environments display higher levels of chronic absenteeism (MacNaughton et al. 2017; Bangay and Blum 2010). On the other hand, human development outcomes such as improved educational attainment in turn may be linked to better environmental outcomes through pathways such as increased awareness about environmental issues and improved access to resources to address them. Is there a link between human development outcomes and environme