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Green aid, aid fragmentation and carbon emissions
1Business School, Edge Hill University, Ormskirk, Lancashire L39 4QP, UK; Departamento de Análisis Económico y Economía Política, Universidad de Sevilla, Avda. Ramón y Cajal, 1, 41018 Sevilla, Spain.
The Science of the Total Environment
|February 3, 2023
Summary
Aid fragmentation hinders green aid
Area of Science:
- Environmental Economics
- International Development
- Climate Change Policy
Background:
- Previous studies on green aid effectiveness in reducing carbon dioxide (CO2) emissions yielded inconclusive results.
- The impact of aid fragmentation on green aid effectiveness has not been previously investigated.
Purpose of the Study:
- To examine the effect of green aid fragmentation on the reduction of CO2 emissions.
- To analyze the role of institutional strength in mediating the impact of green aid fragmentation.
Main Methods:
- Utilized dynamic panel generalized method of moments (GMM) methodology.
- Analyzed panel data from 92 countries between 2002 and 2018.
- Employed various measures of aid fragmentation.
Main Results:
- Green aid fragmentation was found to be detrimental to reducing per capita CO2 emissions.
- The negative impact of aid fragmentation was less pronounced in countries with stronger institutions.
- Evidence suggests that fragmented green aid flows are less effective.
Conclusions:
- Reducing green aid fragmentation is crucial for enhancing its effectiveness in mitigating CO2 emissions.
- Improved coordination and reduced fragmentation of green aid are recommended.
- Stronger institutions can partially mitigate the negative effects of aid fragmentation.
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