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International energy lending: who funds fossil fuels, who funds energy access for the poor?

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  • Sung Kim
  • Johannes Urpelainen

Abstract

Energy demand is surging in the developing world, and international organizations play an important role in the funding of energy projects. However, there is virtually no empirical analysis of how different organizations choose their project portfolios. This article examines the energy funding of different international organizations, with a particular focus on the World Bank’s International Development Association (IDA) and International Finance Corporation (IFC). We use data on 888 projects in 128 recipient countries funded by nine major international organizations during the years 2008–2011. Relative to other organizations, the IDA is found to invest less in fossil fuels and more in projects that improve energy access for the poorest people. The IFC emphasizes fossil fuels while downplaying the importance of energy access. Overall, fossil fuels now receive only a minority of energy funding. However, energy access is only emphasized in a tiny minority of projects. Copyright Springer Science+Business Media Dordrecht 2013

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  • Sung Kim & Johannes Urpelainen, 2013. "International energy lending: who funds fossil fuels, who funds energy access for the poor?," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 13(4), pages 411-423, November.
    • Handle: RePEc:spr:ieaple:v:13:y:2013:i:4:p:411-423
    DOI: 10.1007/s10784-012-9197-7
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    Cited by:

    1. Amankwah-Amoah, Joseph & Sarpong, David, 2016. "Historical pathways to a green economy: The evolution and scaling-up of solar PV in Ghana, 1980–2010," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 90-101.
    2. Sung Kim & Johannes Urpelainen, 2016. "Multilateral energy lending and urban bias in autocracies: promoting fossil fuels," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 21(2), pages 167-190, February.

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