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Determinants of climate finance: Analysis of recipient characteristics in Sub-Sahara Africa

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  • Isaac Doku
  • Ronney Ncwadi
  • Andrew Phiri
  • Muhammad Shafiullah

Abstract

What are the characteristics of recipient countries that attract more climate finance in mitigating and adapting to climate change? In this study, we address this question by looking at recipients in 43 Sub-Sahara African countries for the period 2006–2017, and implement several panel regression techniques, including system generalized methods of moments estimations to address potential endogeneity concerns. We also performed sensitivity analysis using panel quantile regressions. The findings show that Sub-Sahara African countries with higher population growth rate, higher poverty levels, better ease of doing business profile, weaker governance policies, weaker control of corruption, stronger rule of law enforcement, deepened social inequality, and better ICT usage, have attracted more climate finance. Policy implications of the study are discussed.

Suggested Citation

  • Isaac Doku & Ronney Ncwadi & Andrew Phiri & Muhammad Shafiullah, 2021. "Determinants of climate finance: Analysis of recipient characteristics in Sub-Sahara Africa," Cogent Economics & Finance, Taylor & Francis Journals, vol. 9(1), pages 1964212-196, January.
    • Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1964212
    DOI: 10.1080/23322039.2021.1964212
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    Cited by:

    1. Tennant, David & Davies, Stuart & Tennant, Sandria, 2024. "Determinants of access to climate finance: Nuanced insights for SIDS and other vulnerable economies," World Development, Elsevier, vol. 180(C).
    2. Moses Herbert Lubinga & Adrino Mazenda, 2024. "Empirical Analysis of the Effect of Institutional Governance Indicators on Climate Financing," Economies, MDPI, vol. 12(2), pages 1-19, January.

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