IDEAS home Printed from https://ideas.repec.org/a/cup/endeec/v26y2021i1p88-107_5.html
   My bibliography  Save this article

Green official development Aid and carbon emissions: do institutions matter?

Author

Listed:
  • Li, Dmitriy D.
  • Rishi, Meenakshi
  • Bae, Jeong Hwan

Abstract

This paper examines whether green Official Development Aid (ODA) has a significant role in mitigating carbon emissions in recipient countries, and if institutional quality matters for the effectiveness of green ODA. For 86 green ODA recipient countries over the period 2003–2014, we explore the nexus between green ODA, institutions and carbon emissions. By using a two-step system generalized method of moment (GMM), we find that green ODA overall has no direct association with the mitigation of carbon emissions. However, when institutional quality indices are included, we found a significant effect of institutional quality on the effectiveness of green ODA. In general, green ODA is associated with higher carbon emissions in countries with poor institutions. In particular, green ODA is effective in mitigating carbon emissions when channeled to countries that enjoy higher economic freedom as well as more freedom from corruption. Results are mixed for the rule of law.

Suggested Citation

  • Li, Dmitriy D. & Rishi, Meenakshi & Bae, Jeong Hwan, 2021. "Green official development Aid and carbon emissions: do institutions matter?," Environment and Development Economics, Cambridge University Press, vol. 26(1), pages 88-107, February.
    • Handle: RePEc:cup:endeec:v:26:y:2021:i:1:p:88-107_5
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1355770X20000170/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kadir Aden & Sadik Aden Dirir, 2023. "Evaluating The Ad-Hoc Impact Of Fiscal Policy And Governance Quality In Attracting The Official Development Assistance: A Testimonial From East African Countries," Green, Blue & Digital Economy Journal, Publishing house "Baltija Publishing", vol. 4(1).
    2. Kadir Aden & Sadik Aden Dirir, 2023. "Evaluating The Ad-Hoc Impact Of Fiscal Policy And Governance Quality In Attracting The Official Development Assistance: A Testimonial From East African Countries," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 4(1).
    3. Heri Bezić & Davor Mance & Davorin Balaž, 2022. "Panel Evidence from EU Countries on CO 2 Emission Indicators during the Fourth Industrial Revolution," Sustainability, MDPI, vol. 14(19), pages 1-25, October.
    4. Haider Mahmood & Shafiqul Hassan & Muhammad Tanveer & Abdul-Rahim Ahmad, 2022. "The Effects of Rule of Law, Regulatory Quality, and Renewable Energy on CO2 Emissions in South Asia," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 16-21, November.
    5. Lv, Xiaoting & Wu, Ziang, 2024. "The green effect of digital transformation: The impact of digital transformation in fiscal and taxation on regional green development," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 787-800.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:endeec:v:26:y:2021:i:1:p:88-107_5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/ede .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.