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Environmental Aid and Economic Development in the Third World

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Author Info

  • B. Mak ARVIN

    ()

  • Zafar KAYANI

    ()

  • Marisa A. SCIGLIANO

    ()

Abstract

Climate change has a profound impact on the planet, especially on developing countries – as highlighted by the Stern Report to the British government in 2006. One solution to mitigating environmental degradation and achieving better outcomes appears to be through the provision of aid to poor countries. Using newly available data from the PLAID (Project-Level Aid) database project, we ask what determines the level of environmental aid to developing countries – and in particular whether such aid is affected by the level of economic development of the recipient country. At the same time, we investigate whether economic development is affected by the receipt of environmental aid. Implicit in the second question, of course, is the notion that, besides addressing the ecological outcomes, environmental aid may have the potential to enhance the economic prosperity of poor countries.

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Bibliographic Info

Article provided by Euro-American Association of Economic Development in its journal International Journal of Applied Econometrics and Quantitative Studies .

Volume (Year): 9 (2009)
Issue (Month): 1 ()
Pages:

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Handle: RePEc:eaa:ijaeqs:v:9:y2009:i:1_1

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Related research

Keywords: Economic Development; Aid; Developing Countries;

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References

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  1. Hicks, Robert L. & Parks, Bradley C. & Roberts, J. Timmons & Tierney, Michael J., 2008. "Greening Aid?: Understanding the Environmental Impact of Development Assistance," OUP Catalogue, Oxford University Press, number 9780199213948.
  2. Panos Hatzipanayotou & Sajal Lahiri & Michael S. Michael, 2000. "Can Cross-Border Pollution Reduce Pollution?," CESifo Working Paper Series 360, CESifo Group Munich.
  3. Torsten Persson & Guido Tabellini, 2006. "Democracy and Development: The Devil in the Details," CESifo Working Paper Series 1672, CESifo Group Munich.
  4. B. Mak Arvin & Francisco Barillas, 2002. "Foreign aid, poverty reduction, and democracy," Applied Economics, Taylor & Francis Journals, vol. 34(17), pages 2151-2156.
  5. B. Mak Arvin & Parviz Dabir-Alai & Byron Lew, 2006. "Does Foreign Aid Affect The Environment In Developing Economies?," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 31(1), pages 63-87, June.
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