Green Finance, 2019, 1(4): 405-428. doi: 10.3934/GF.2019.4.405.

Research article

Export file:

Format

  • RIS(for EndNote,Reference Manager,ProCite)
  • BibTex
  • Text

Content

  • Citation Only
  • Citation and Abstract

Host country characteristics attracting climate projects through public-private partnerships

1 Department of Technology & Society, Stony Brook University, 1425 Old Computer Science Building Stony Brook, NY 11794, USA
2 Department of Economics, Southern Illinois University, Carbondale, USA

Climate technology transfer to developing countries face a range of challenges stemming from the capacity of destination or host countries. Access to finance has been identified as a major barrier in academic literature as well as by the donor community, and efforts were made to not only fill some of the gap, but also to reduce local hurdles and usher in private sector investments. This latter phenomenon has not gained similar scrutiny as projects under carbon finance schemes or technical assistance projects of international development organizations. This paper offers an outcome evaluation of a public-private partnership as it relates to climate finance & technology investment in developing countries. The analysis focused on the activities of Private Financing Advisory Network (PFAN), which works through open solicitation of projects sought from developing countries. Therefore, it would be expected that some countries are better equipped to attract investments than others. Using cross-sectional country characteristics data, negative binomial regression was used to associate the characteristics with the count of projects in host countries. Results show that key characteristics associated with the respective number of projects are the size of the market, and a composite score measuring health of the financial sector in host countries. It reaffirms the pattern that private-sector driven initiatives tends to tilt towards destination where the returns of investments are greatest, or the risks of investments are lower. The findings highlight the question of additionality of climate technology investments, and whether the public-private partnership address the barrier of access to finance.
  Figure/Table
  Supplementary
  Article Metrics

Keywords financial markets; Clean Development Mechanism (CDM); Getting Credit Distance to Frontier; outcome evaluation; additionality

Citation: Nabil Haque, Sungida Rashid. Host country characteristics attracting climate projects through public-private partnerships. Green Finance, 2019, 1(4): 405-428. doi: 10.3934/GF.2019.4.405

References

  • 1. Addison M, Rahman F, Shapiro MD, et al. (2015) Performance Evaluation Final Report: Climate Technology Initiative Private Financing Advisory Network. Retrieved from Arlington, Virginia, USA: Development & Training Services, Inc. (dTS).
  • 2. Alker S, Joy V, Roberts P, et al. (2000) The Definition of Brownfield. J Environ Plann Manage 43: 49-69. doi:10.1080/09640560010766    
  • 3. Andonova LB (2010) Public-Private Partnerships for the Earth: Politics and Patterns of Hybrid Authority in the Multilateral System. Global Environ Polit 10: 25-53. doi: 10.1162/glep.2010.10.2.25    
  • 4. Backstrand K (2008) Accountability of networked climate governance: The rise of transnational climate partnerships. Global Environ Polit 8: 74-102. doi:DOI 10.1162/glep.2008.8.3.74    
  • 5. Banerjee SG, Moreno FA, Sinton JE, et al. (2017) Regulatory indicators for sustainable energy: a global scorecard for policy makers Retrieved from Washington, DC: World Bank Group: Available from: http://documents.worldbank.org/curated/en/538181487106403375/Regulatory-indicators-for-sustainable-energy-a-global-scorecard-for-policy-makers
  • 6. Barnard S, Nakhooda S (2015) Financing climate technology transfer. Retrieved from Overseas Development Institute website. Available from: https://www.odi.org/sites/odi.org.uk/files/odi-assets/publications-opinion-files/10053.pdf
  • 7. Clark R, Reed J, Sunderland T (2018) Bridging funding gaps for climate and sustainable development: Pitfalls, progress and potential of private finance. Land Use Policy 71: 335-346. doi:10.1016/j.landusepol.2017.12.013    
  • 8. Comin D, Nanda R (2014) Financial Development and Technology Diffusion. Working Paper 15-036. Harvard Business School. Available from: http://www.hbs.edu/faculty/Publication%20Files/15-036_0192fa1b-12a8-4464-afac-d9380c06f498.pdf
  • 9. Coxe S, West SG, Aiken LS (2009) The analysis of count data: a gentle introduction to poisson regression and its alternatives. J Pers Assess 91: 121-136. doi:10.1080/00223890802634175    
  • 10. de Coninck H, Bhasin S (2015) Meaningful technology development and transfer: A necessary condition for a viable climate regime. In S. Barrett, C. Carraro, & J. de Melo (Eds.), Towards a Workable and Effective Climate Regime, London, UK: Centre for Economic Policy Research (CEPR) Press, 451-464.
  • 11. de Coninck H, Sagar A (2014) Making sense of policy for climate technology development and transfer. Climate Policy 15: 1-11. doi:10.1080/14693062.2014.953909
  • 12. Dechezleprêtre A, Glachant M, Ménière Y (2008) The Clean Development Mechanism and the international diffusion of technologies: An empirical study. Energy Policy 36: 1273-1283. doi:10.1016/j.enpol.2007.12.009    
  • 13. Dirix J, Peeters W, Sterckx S (2015) Is the Clean Development Mechanism delivering benefits to the poorest communities in the developing world? A critical evaluation and proposals for reform. Environ Dev Sust 18: 839-855. doi:10.1007/s10668-015-9680-8
  • 14. Dixon RK, Scheer RM, Williams GT (2010) Sustainable energy investments: contributions of the Global Environment Facility. Mitig Adapt Strat Gl 16: 83-102. doi:10.1007/s11027-010-9253-y
  • 15. Doranova A, Costa I, Duysters G (2010) Knowledge base determinants of technology sourcing in clean development mechanism projects. Energy Policy 38: 5550-5559. doi:10.1016/j.enpol.2010.04.055    
  • 16. Gandenberger C, Bodenheimer M, Schleich J, et al. (2015) Factors driving international technology transfer: empirical insights from a CDM project survey. Climate Policy 16: 1065-1084. doi:10.1080/14693062.2015.1069176
  • 17. Hicks RL, Parks BC, Roberts JT (2010) Greening aid?: Understanding the environmental impact of development assistance, Oxford University Press.
  • 18. Hogarth JR (2012) The role of climate finance in innovation systems. J Sust Financ Investment 2(3-4): 257-274. doi:10.1080/20430795.2012.742637
  • 19. Keeley AR (2017) Renewable Energy in Pacific Small Island Developing States: the role of international aid and the enabling environment from donor's perspectives. J Clean Prod 146: 29-36. doi:10.1016/j.jclepro.2016.05.011    
  • 20. Kennedy M, Basu B (2013) Overcoming barriers to low carbon technology transfer and deployment: An exploration of the impact of projects in developing and emerging economies. Renew Sust Energy Rev 26: 685-693. doi:10.1016/j.rser.2013.05.071    
  • 21. Kim J, Park K (2018) Effect of the Clean Development Mechanism on the deployment of renewable energy: Less developed vs. well-developed financial markets. Energy Econ 75: 1-13. doi:10.1016/j.eneco.2018.07.034
  • 22. Pattberg P (2010) Public-private partnerships in global climate governance. Wiley Interdiscip Rev Climate Change 1: 279-287. doi:10.1002/wcc.38    
  • 23. PFAN (2017) PFAN Brochure-Accelerating Investment for Climate and Clean Energy (1-8): CTI-PFAN.
  • 24. Rahman SM, Ahmad MM (2015) Climate finance towards vulnerable countries: evidence from the Global Environment Facility (GEF). Int J Green Econ 9: 199-214.    
  • 25. Schmid G (2012) Technology transfer in the Clean Development Mechanism: the role of host country characteristics. Climate Policy 12: 722-740.    
  • 26. Stadelmann M, Michaelowa A, Roberts JT (2013). Difficulties in accounting for private finance in international climate policy. Climate Policy 13: 718-737. doi:10.1080/14693062.2013.791146    
  • 27. Stevenson H (2013) Governing Climate Technologies: Is there Room for Democracy? Environ Values 22: 567-587. doi:10.3197/096327113x13745164553752    
  • 28. Sugiyama T, Michaelowa A (2001) Reconciling the design of CDM with inborn paradox of additionality concept. Climate Policy 1: 75-83. doi:10.3763/cpol.2001.0107    
  • 29. Tabuchi H (2017) U.N. Climate Projects, Aimed at the Poorest, Raise Red Flags. New York Times, A10. Availabe from: https://www.nytimes.com/2017/11/16/climate/green-climate-fund.html
  • 30. The Economist (2018) Green Tape: The European Union wants to make finance more environmentally friendly. Economist 426: 68.
  • 31. The Economist (2019) Climate Action-The Day After Tomorrow. Economist 432: 56-57.
  • 32. Tonkonogy B, Brown J, Micale V, et al. (2018) Blended Finance in Clean Energy: Experiences and Opportunities. Retrieved from Climate Policy Initiative: Available from: https://climatepolicyinitiative.org/wp-content/uploads/2018/01/Blended-Finance-in-Clean-Energy-Experiences-and-Opportunities.pdf
  • 33. UNIDO (2016) Project-150346. Hosting and managing the Private Financing Advisory Network. United Nations Industrial Development Organization (UNIDO) Available from: https://open.unido.org/api/documents/4460373/download/PFAN_Project_document.pdf
  • 34. USAID (2017) Private Financing Advisory Network Asia USAID Factsheet.
  • 35. Whitley S (2015) Mapping climate-relevant incentives and investment at country level: a diagnostic tool to mobilise private climate finance. Retrieved from Overseas Development Institute website: https://www.odi.org/sites/odi.org.uk/files/resource-documents/10341.pdf
  • 36. Yeo S (2019) Where climate cash is flowing and why it's not enough. Nature 573: 328-331. doi:10.1038/d41586-019-02712-3    
  • 37. World Bank (2017) Getting Credit Distance to Frontier. Available from: http://www.doingbusiness.org/data/distance-to-frontier

 

Reader Comments

your name: *   your email: *  

© 2019 the Author(s), licensee AIMS Press. This is an open access article distributed under the terms of the Creative Commons Attribution Licese (http://creativecommons.org/licenses/by/4.0)

Download full text in PDF

Export Citation

Copyright © AIMS Press All Rights Reserved