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Transformational Climate Finance: Donors' Willingness to Support Deep and Transformational Greenhouse Gas Emissions Reductions in Lower-Income Countries

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dc.contributor.authorStrand, Jon
dc.date.accessioned2020-05-21T19:28:45Z
dc.date.available2020-05-21T19:28:45Z
dc.date.issued2020-05
dc.description.abstractThis paper uses simple analytical models to study high-income donor countries' willingness to pay to supply mitigation finance to low-income countries; how this depends on modality for finance supply; and how it changes as the global greenhouse gas mitigation agenda moves forward. The paper focuses on two modalities: transformational project-based mitigation finance (transitioning from fossil to non-fossil energy use at scale), and transformational policy-based mitigation finance support (implementing comprehensive carbon taxation). These modalities are compared with conventional finance for which donors have lower willingness to pay. High-income countries' willingness to pay is higher when mitigation is combined with carbon taxation; private-sector finance is also more highly incentivized. Reaching the transformational mitigation finance stage can be challenging, as it may require large provision of mitigation finance with negative net returns to high-income countries. Willingness to pay will be higher when high-income countries collaborate in the provision of mitigation finance. The findings show that more effective collaboration can be sustained when it is enforced by an international financial institution that collects and spends the provided mitigation finance to induce efficient mitigation activity in low-income countries and collaboration among donors is enforced by simple tit-for-tat reaction strategies.en
dc.identifierhttp://documents.worldbank.org/curated/en/541441589828863997/Transformational-Climate-Finance-Donors-Willingness-to-Support-Deep-and-Transformational-Greenhouse-Gas-Emissions-Reductions-in-Lower-Income-Countries
dc.identifier.doi10.1596/1813-9450-9251
dc.identifier.urihttps://hdl.handle.net/10986/33798
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 9251
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectGREENHOUSE GAS EMISSIONS
dc.subjectCLIMATE ACTION
dc.subjectCLIMATE CHANGE
dc.subjectCLIMATE CHANGE MITIGATION
dc.subjectMITIGATION POLICY
dc.subjectCARBON POLICY
dc.subjectTRANSFORMATIONAL CLIMATE POLICY
dc.subjectCLIMATE FINANCE
dc.subjectCARBON TAXATION
dc.subjectWILLINGNESS TO PAY
dc.titleTransformational Climate Financeen
dc.title.subtitleDonors' Willingness to Support Deep and Transformational Greenhouse Gas Emissions Reductions in Lower-Income Countriesen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleTransformational Climate Finance: Donors' Willingness to Support Deep and Transformational Greenhouse Gas Emissions Reductions in Lower-Income Countries
okr.date.disclosure2020-05-18
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/541441589828863997/Transformational-Climate-Finance-Donors-Willingness-to-Support-Deep-and-Transformational-Greenhouse-Gas-Emissions-Reductions-in-Lower-Income-Countries
okr.guid541441589828863997
okr.identifier.doi10.1596/1813-9450-9251
okr.identifier.externaldocumentum090224b08795a042_2_0
okr.identifier.internaldocumentum32046225
okr.identifier.reportWPS9251
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/541441589828863997/pdf/Transformational-Climate-Finance-Donors-Willingness-to-Support-Deep-and-Transformational-Greenhouse-Gas-Emissions-Reductions-in-Lower-Income-Countries.pdfen
okr.statistics.combined1454
okr.statistics.dr541441589828863997
okr.statistics.drstats896
okr.topicEnvironment::Carbon Policy and Trading
okr.topicEnvironment::Climate Change Mitigation and Green House Gases
okr.topicEnvironment::Environmental Economics & Policies
okr.topicFinance and Financial Sector Development::Finance and Development
okr.unitClimate Change Group
relation.isAuthorOfPublicationc9d5219c-9076-5386-b0d2-03bab820c61d
relation.isAuthorOfPublication.latestForDiscoveryc9d5219c-9076-5386-b0d2-03bab820c61d
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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