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The capacity to spend development funds in the energy sector

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  • Gualberti, Giorgio
  • Singer, Christine Eibs
  • Bazilian, Morgan

Abstract

Meeting the goal of universal access to modern energy services by 2030 will require dramatically increasing, as well as re-orienting, the current flows of energy investments in developing countries. While the mobilization of such capital is consistently presented as a major challenge, other issues such as the predictability and volatility of financing flows and absorption capacity will also play a crucial role. This paper examines the issues of predictability and absorption of development finance in the context of the U.N. Sustainable Energy for All initiative, by presenting analysis of the critical points that could limit the effectiveness of committed and future funds. In doing so, we also present analysis of the predictability of the financial assistance for the energy sector and how it relates to the funding in other sectors. We observe that the energy sector is characterized by lower than average disbursement rates, with considerable variability between countries, and is well correlated with government effectiveness figures and the disbursements rates of other sectors.

Suggested Citation

  • Gualberti, Giorgio & Singer, Christine Eibs & Bazilian, Morgan, 2013. "The capacity to spend development funds in the energy sector," Utilities Policy, Elsevier, vol. 26(C), pages 36-44.
    • Handle: RePEc:eee:juipol:v:26:y:2013:i:c:p:36-44
    DOI: 10.1016/j.jup.2013.05.001
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    References listed on IDEAS

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    1. World Bank, 2012. "World Development Indicators 2012," World Bank Publications - Books, The World Bank Group, number 6014.
    2. Gualberti, Giorgio & Bazilian, Morgan & Haites, Erik & Carvalho, Maria da Graça, 2012. "Development Finance for Universal Energy Access," Energy: Resources and Markets 122009, Fondazione Eni Enrico Mattei (FEEM).
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    5. Oya Celasun & Jan Walliser, 2008. "Predictability of aid: Do fickle donors undermine aid effectiveness? [‘The colonial origins of comparative development: An empirical investigation’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 23(55), pages 546-594.
    6. Bulír, Ales & Hamann, A. Javier, 2008. "Volatility of Development Aid: From the Frying Pan into the Fire?," World Development, Elsevier, vol. 36(10), pages 2048-2066, October.
    7. Gualberti, Giorgio & Martins, Luis Filipe & Bazilian, Morgan, 2012. "An Econometric Analysis of the Effectiveness of Development Finance for the Energy Sector," Economy and Society 143130, Fondazione Eni Enrico Mattei (FEEM).
    8. Hudson, John & Mosley, Paul, 2008. "Aid Volatility, Policy and Development," World Development, Elsevier, vol. 36(10), pages 2082-2102, October.
    9. Giorgio Gualberti & Morgan Bazilian & Erik Haites & Maria da Graça Carvalho, 2012. "Development Finance for Universal Energy Access," Working Papers 2012.12, Fondazione Eni Enrico Mattei.
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    1. Yang, Suyeon & Park, Sangchan, 2020. "The effects of renewable energy financial incentive policy and democratic governance on renewable energy aid effectiveness," Energy Policy, Elsevier, vol. 145(C).
    2. Cancino-Solórzano, Yoreley & Paredes-Sánchez, José Pablo & Gutiérrez-Trashorras, Antonio José & Xiberta-Bernat, Jorge, 2016. "The development of renewable energy resources in the State of Veracruz, Mexico," Utilities Policy, Elsevier, vol. 39(C), pages 1-4.

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