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Coding Error or Statistical Embellishment? The Political Economy of Reporting Climate Aid

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  • Michaelowa, Axel
  • Michaelowa, Katharina

Abstract

To benefit from a wide-spread public support for climate policy, aid agencies strive to show the climate relevance of their development activities. Using project-level aid data and country-level political data for 21 DAC donors from 1995 to 2007, we test whether this may lead to politically motivated misreporting. Through keyword search in individual project descriptions and complementary hand-coding we assess all aid activities for their actual climate change-related content, and thereby construct our most relevant control variables. Econometric results reveal that indeed, project coding is influenced systematically by the donor governments’ ideological orientation as well as by national voters’ environmental preferences.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 39 (2011)
Issue (Month): 11 ()
Pages: 2010-2020

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Handle: RePEc:eee:wdevel:v:39:y:2011:i:11:p:2010-2020

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Web page: http://www.elsevier.com/locate/worlddev

Related research

Keywords: development assistance; climate policy; public choice; project coding; mitigation; adaptation;

References

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  1. Anwar, Mumtaz & Michaelowa, Katharina, 2004. "The Political Economy of US Aid to Pakistan," HWWA Discussion Papers 302, Hamburg Institute of International Economics (HWWA).
  2. Axel Dreher & Jan-Egbert Sturm & James Raymond Vreeland, 2007. "Development Aid and International Politics: Does membership on the UN Security Council influence World Bank decisions?," KOF Working papers 07-171, KOF Swiss Economic Institute, ETH Zurich.
  3. Hicks, Robert L. & Parks, Bradley C. & Roberts, J. Timmons & Tierney, Michael J., 2010. "Greening Aid?: Understanding the Environmental Impact of Development Assistance," OUP Catalogue, Oxford University Press, number 9780199582792, September.
  4. Sajal Lahiri & Katharina Michaelowa, 2006. "Editorial: The Political Economy of Aid," Review of Development Economics, Wiley Blackwell, vol. 10(2), pages 177-178, 05.
  5. Jean-Claude Berthélemy, 2006. "Bilateral Donors' Interest vs. Recipients' Development Motives in Aid Allocation: Do All Donors Behave the Same?," Review of Development Economics, Wiley Blackwell, vol. 10(2), pages 179-194, 05.
  6. Kilby, Christopher, 2009. "The political economy of conditionality: An empirical analysis of World Bank loan disbursements," Journal of Development Economics, Elsevier, vol. 89(1), pages 51-61, May.
  7. Benno Torgler & María A. García Valiñas & Alison Macintyre, 2008. "Differences in Preferences Towards the Environment: The Impact of a Gender, Age and Parental Effect," Working Papers 2008.18, Fondazione Eni Enrico Mattei.
  8. Katharina Michaelowa & Axel Borrmann, 2006. "Evaluation Bias and Incentive Structures in Bi- and Multilateral Aid Agencies," Review of Development Economics, Wiley Blackwell, vol. 10(2), pages 313-329, 05.
  9. John A., List & Daniel, Sturm, 2006. "How Elections Matter: Theory and Evidence from Environmental Policy," Discussion Papers in Economics 768, University of Munich, Department of Economics.
  10. Florens Flues & Axel Michaelowa & Katharina Michaelowa, 2010. "What determines UN approval of greenhouse gas emission reduction projects in developing countries?," Public Choice, Springer, vol. 145(1), pages 1-24, October.
  11. Felder, Stefan & Schleiniger, Reto, 2002. "Environmental tax reform: efficiency and political feasibility," Ecological Economics, Elsevier, vol. 42(1-2), pages 107-116, August.
  12. World Bank, 2009. "World Development Indicators 2009," World Bank Publications, The World Bank, number 4367, October.
  13. Bättig, Michèle B. & Bernauer, Thomas, 2009. "National Institutions and Global Public Goods: Are Democracies More Cooperative in Climate Change Policy?," International Organization, Cambridge University Press, vol. 63(02), pages 281-308, April.
  14. Michaelowa, Axel & Michaelowa, Katharina, 2005. "Climate or development: Is ODA diverted from its original purpose?," HWWI Research Papers 4-2, Hamburg Institute of International Economics (HWWI).
  15. Maizels, Alfred & Nissanke, Machiko K., 1984. "Motivations for aid to developing countries," World Development, Elsevier, vol. 12(9), pages 879-900, September.
  16. Dreher, Axel & Sturm, Jan-Egbert & Vreeland, James Raymond, 2009. "Global horse trading: IMF loans for votes in the United Nations Security Council," European Economic Review, Elsevier, vol. 53(7), pages 742-757, October.
  17. Fleck, Robert K. & Kilby, Christopher, 2010. "Changing aid regimes? U.S. foreign aid from the Cold War to the War on Terror," Journal of Development Economics, Elsevier, vol. 91(2), pages 185-197, March.
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Citations

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Cited by:
  1. Jonathan Pickering & Jakob Skovgaard & Soyeun Kim & J. Timmons Roberts & David Rossati & Martin Stadelmann & Hendrikje Reich, 2013. "Acting on Climate Finance Pledges: Inter-Agency Dynamics and Relationships with Aid in Contributor States," CCEP Working Papers 1306, Centre for Climate Economics & Policy, Crawford School of Public Policy, The Australian National University.
  2. Dreher, Axel & Gehring, Kai & Klasen, Stephan, 2013. "Gesture politics or real commitment? Gender inequality and the allocation of aid," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  3. Catherine Weaver, 2011. "Comment on Michaelowa and Michaelowa (2011): Climate business for poverty reduction: The role of the World Bank," The Review of International Organizations, Springer, vol. 6(3), pages 457-460, September.
  4. Katherine Sierra, Timmons Roberts, Michele de Nevers, Claire Langley, Cory Smith, 2013. "First Steps toward a Quality of Climate Finance Scorecard (QUODA-CF)-Working Paper 335," Working Papers 335, Center for Global Development.
  5. Nicholas Tatrallyay & Martin Stadelmann, 2013. "Climate change mitigation and international finance: the effectiveness of the Clean Development Mechanism and the Global Environment Facility in India and Brazil," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 18(7), pages 903-919, October.

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