Working Paper

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

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Strand, Jon
dc.date.accessioned
2020-05-21T19:28:45Z
dc.date.available
2020-05-21T19:28:45Z
dc.date.issued
2020-05
dc.date.lastModified
2020-05-22T05:11:07Z
dc.description.abstract
This 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.identifier
http://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.uri
http://hdl.handle.net/10986/33798
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 9251
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
GREENHOUSE GAS EMISSIONS
dc.subject
CLIMATE ACTION
dc.subject
CLIMATE CHANGE
dc.subject
CLIMATE CHANGE MITIGATION
dc.subject
MITIGATION POLICY
dc.subject
CARBON POLICY
dc.subject
TRANSFORMATIONAL CLIMATE POLICY
dc.subject
CLIMATE FINANCE
dc.subject
CARBON TAXATION
dc.subject
WILLINGNESS TO PAY
dc.title
Transformational Climate Finance
en
dc.title.subtitle
Donors' Willingness to Support Deep and Transformational Greenhouse Gas Emissions Reductions in Lower-Income Countries
en
dc.type
Working Paper
en
okr.date.disclosure
2020-05-18
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.docurl
http://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.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-9251
okr.identifier.externaldocumentum
090224b08795a042_2_0
okr.identifier.internaldocumentum
32046225
okr.identifier.report
WPS9251
okr.imported
true
en
okr.language.supported
en
okr.pdfurl
http://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.pdf
en
okr.topic
Environment :: Carbon Policy and Trading
okr.topic
Environment :: Climate Change Mitigation and Green House Gases
okr.topic
Environment :: Environmental Economics & Policies
okr.topic
Finance and Financial Sector Development :: Finance and Development
okr.unit
Climate Change Group

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