Page - (000236) - in Evaluating Climate Change Action for Sustainable Development

begin a conversation on the economic distribution of innovative environmental financing tools (Fig. 12.2). Workingfromtheconceptualframework, theformulafor theindexisasfollows: Livelihood impact¼ 2∗SKLð Þþ PAYð Þþ SATð Livelihood Index LIð Þ¼ Sumof job impactvalues Total numberof jobs invaluechain Thescore for“Skill” includesemployment in termsof jobscreatedandemploy- ment in terms of jobs containing skilled and managerial opportunities, thus the variable is double-weightedgiven that its value encompasseshalf of the indicators of interest in theconceptual framework.Alongtheemploymentspectrum,unskilled workmeans that there was no training involved for the position andmanagerial work implies that the employeehas a degree of decisionmakingpowerwithin the enterprise.“Pay”relates to the typeofemployment,giventhatnotallof thejobsare financially compensated. Along this continuum, “Volunteer” labor includes con- sistent work for the carbon finance project that is paid outside of the formal economy(i.e. throughcompanyswagorpromisesoffutureemployment).Commis- sioned labor lies at themidpoint of the “PAY”valuation scale given that there is a predictablefinancial gain fromworkeffort, but the risksofproject failure areborn by the employee. While there is indeed the possibility of high reward through Fig. 12.2 Livelihood impact of a carbonproject, conceptual framework 220 J.Hyman