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Adaptation Funding and Greenhouse Gas Emissions: Halo Effect or Complacency?

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  • Salpie Djoundourian, Walid Marrouch, and Nagham Sayour

Abstract

This paper contributes to the debate surrounding the impact of adaptation to climate change on the incentives to abate greenhouse gases emissions. Using data from the World Development Indicators and various adaptation funds under the UNFCCC framework, this paper provides an empirical analysis of the relation between adaptation and emissions. We specifically test whether adaptation measures to climate change affect emissions of greenhouse gases in a world where adaptation funds are available. Using a staggered difference-in-differences approach and an event study analysis, we find that receiving adaptation funding significantly and negatively affects several CO2 emissions measures, providing preliminary evidence of the presence of a halo effect of adaptation funding. We do not find evidence of a significant change in the emissions of methane, nitrous dioxide and other greenhouse gases.

Suggested Citation

  • Salpie Djoundourian, Walid Marrouch, and Nagham Sayour, 2022. "Adaptation Funding and Greenhouse Gas Emissions: Halo Effect or Complacency?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    • Handle: RePEc:aen:journl:ej43-4-marrouch
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    1. Anderson, Michael L, 2008. "Multiple Inference and Gender Differences in the Effects of Early Intervention: A Reevaluation of the Abecedarian, Perry Preschool, and Early Training Projects," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt15n8j26f, Department of Agricultural & Resource Economics, UC Berkeley.
    2. Anderson, Michael L., 2008. "Multiple Inference and Gender Differences in the Effects of Early Intervention: A Reevaluation of the Abecedarian, Perry Preschool, and Early Training Projects," Journal of the American Statistical Association, American Statistical Association, vol. 103(484), pages 1481-1495.
    3. Buob, Seraina & Stephan, Gunter, 2011. "To mitigate or to adapt: How to confront global climate change," European Journal of Political Economy, Elsevier, vol. 27(1), pages 1-16, March.
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    Cited by:

    1. Rohrer, Anna Viktoria & Rubio, Santiago J., 2024. "The strategic role of adaptation in international environmental agreements," Journal of Environmental Economics and Management, Elsevier, vol. 124(C).
    2. Ma, Lina & Iqbal, Najaf & Bouri, Elie & Zhang, Yang, 2023. "How good is green finance for green innovation? Evidence from the Chinese high-carbon sector," Resources Policy, Elsevier, vol. 85(PB).
    3. Rohrer, Anna Viktoria & Rubio, Santiago J., 2024. "The strategic role of adaptation in international environmental agreements," Journal of Environmental Economics and Management, Elsevier, vol. 124(C).
    4. Peng, Lijuan & Pan, Zhigang & Liang, Chao & Umar, Muhammad, 2023. "Exchange rate volatility predictability: A new insight from climate policy uncertainty," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 688-700.

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