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Clean energy for the Pacific Island countries: Does donor funding promote this transition?

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  • Narayan, Seema
  • Narayan, Paresh Kumar

Abstract

Donor funding, both grants and concessional loans, on renewable energy projects to Pacific Island countries (PICs) have increased overtime. The goal of this paper is to evaluate the effectiveness of this donor funding on PICs transition to renewable energy. Our hypothesis is that donor funded renewable projects have facilitated transition to clean energy for PICs. Using data for nine PICs, we discover no support for our hypothesis. Alternative measures of donor funding persistently reject our hypothesis. Additional regression analysis suggests that donor funding is insignificantly related to the renewable energy transition. We draw policy implications from these findings.

Suggested Citation

  • Narayan, Seema & Narayan, Paresh Kumar, 2024. "Clean energy for the Pacific Island countries: Does donor funding promote this transition?," Energy Economics, Elsevier, vol. 134(C).
    • Handle: RePEc:eee:eneeco:v:134:y:2024:i:c:s0140988324002755
    DOI: 10.1016/j.eneco.2024.107567
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    More about this item

    Keywords

    Transition to clean energy; Donor grants; Debt; Real GDP per capita; Pacific Island nations;
    All these keywords.

    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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