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Donor Characteristics And The Allocation Of Aid To Climate Mitigation Finance

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  • AIDY HALIMANJAYA

    (School of International Development, University of East Anglia, Norwich NR4 7TJ, UK;
    Tyndall Centre for Climate Change Research, University of East Anglia, Norwich NR4 7TJ, UK)

  • ELISSAIOS PAPYRAKIS

    (School of International Development, University of East Anglia, Norwich NR4 7TJ, UK;
    International Institute of Social Studies (ISS), Erasmus University Rotterdam, Kortenaerkade 12, 2518 AX The Hague, The Netherlands)

Abstract

We make use of a panel dataset of 22 donor countries from 1998 to 2009 to examine the links between donor characteristics and the share of overseas development assistance allocated to climate mitigation finance. We find that donors with a larger green domestic budget tend to allocate a smaller portion of overseas aid to mitigation finance (possibly as a result of a competing interest between spending on domestic environmental projects and international climate projects). The opposite holds for donor countries with better institutions (governance) that have ratified the Kyoto Protocol. We also find important discrepancies when comparing the effects of donor characteristics on committed versus disbursed mitigation finance (as a share of aid). For the latter, only commitment to the Kyoto Protocol appears to be of high statistical significance.

Suggested Citation

  • Aidy Halimanjaya & Elissaios Papyrakis, 2015. "Donor Characteristics And The Allocation Of Aid To Climate Mitigation Finance," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 6(03), pages 1-25.
    • Handle: RePEc:wsi:ccexxx:v:06:y:2015:i:03:n:s2010007815500141
    DOI: 10.1142/S2010007815500141
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    References listed on IDEAS

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    1. Nicole Grunewald & Inmaculada Martínez-Zarzoso, 2009. "Driving Factors of Carbon Dioxide Emissions and the Impact from Kyoto Protocol," Ibero America Institute for Econ. Research (IAI) Discussion Papers 190, Ibero-America Institute for Economic Research.
    2. Matthew Odedokun, 2003. "Analysis Of Deviations And Delays In Aid Disbursements," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 28(1), pages 137-169, June.
    3. World Bank, 2011. "World Development Indicators 2011," World Bank Publications - Books, The World Bank Group, number 2315.
    4. World Bank, 2014. "World Development Indicators 2014," World Bank Publications - Books, The World Bank Group, number 18237.
    5. Matthew Odedokun, 2003. "Analysis of Deviations and Delays in Aid Disbursements," WIDER Working Paper Series DP2003-26, World Institute for Development Economic Research (UNU-WIDER).
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    Cited by:

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    2. Peterson, Lauri & Skovgaard, Jakob, 2019. "Bureaucratic politics and the allocation of climate finance," World Development, Elsevier, vol. 117(C), pages 72-97.
    3. Nadia Basty & Dorsaf Azouz Ghachem, 2022. "A Sectoral Approach of Adaptation Finance in Developing Countries: Does Climate Justice Apply?," Sustainability, MDPI, vol. 14(17), pages 1-18, August.
    4. Renato Passaro & Ivana Quinto & Giuseppe Scandurra & Antonio Thomas, 2020. "How Do Energy Use and Climate Change Affect Fast-Start Finance? A Cross-Country Empirical Investigation," Sustainability, MDPI, vol. 12(22), pages 1-23, November.
    5. Meng Xu & Zhongfeng Qin & Yigang Wei, 2023. "Exploring the financing and allocating schemes for the Chinese Green Climate Fund," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(3), pages 2487-2508, March.
    6. Daniel Y. Kono & Gabriella R. Montinola, 2019. "Foreign aid and climate change policy: What can('t) the data tell us?," WIDER Working Paper Series wp-2019-15, World Institute for Development Economic Research (UNU-WIDER).
    7. Jonathan Pickering & Paul Mitchell, 2017. "What drives national support for multilateral climate finance? International and domestic influences on Australia’s shifting stance," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 17(1), pages 107-125, February.

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