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Climate or development: Is ODA diverted from its original purpose?

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  • Michaelowa, Axel
  • Michaelowa, Katharina

Abstract

We analyze the interaction of climate and development policy that has taken place since the early 1990s. Increasing dissatisfaction about the results of traditional development cooperation and the appeal of climate policy as a new policy field led to a rapid reorientation of aid flows. At the turn of the century, over 7% of aid flows were spent on greenhouse gas emissions mitigation. However, the contribution of emissions mitigation projects to the central development objective of poverty reduction as specified in the Millennium Development Goals is limited and other project types are likely to be much more effective. Adaptation to climate change can be expected to have higher synergies with poverty alleviation than mitigation, primarily through its impact on health, the conservation of arable land and the protection against natural disasters. An analysis of the Clean Development Mechanism shows that projects addressing the poor directly are very rare; even small renewable energy projects in rural areas tend to benefit rich farmers and the urban population. Use of development aid for CDM projects and / or their preparation via capacity building is thus clearly not warranted. --

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Bibliographic Info

Paper provided by Hamburg Institute of International Economics (HWWI) in its series HWWI Research Papers with number 4-2.

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Date of creation: 2005
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Handle: RePEc:zbw:hwwirp:4-2

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Keywords: ODA; climate policy; poverty reduction; MDGs; CDM; mitigation; adaptation;

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Cited by:
  1. Suzi Kerr & Adam Millard-Ball, 2012. "Cooperation To Reduce Developing Country Emissions," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 3(04), pages 1250023-1-1.
  2. Åsa Persson, 2009. "Environmental policy integration and bilateral development assistance: challenges and opportunities with an evolving governance framework," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 9(4), pages 409-429, November.
  3. Axel Michaelowa & Katharina Michaelowa, 2011. "Climate business for poverty reduction? The role of the World Bank," The Review of International Organizations, Springer, vol. 6(3), pages 259-286, September.
  4. Manoj Roy & Simon Guy & David Hulme & Ferdous Jahan, 2011. "Poverty and climate change in urban Bangladesh (CLIMURB): an analytical framework," Brooks World Poverty Institute Working Paper Series 14811, BWPI, The University of Manchester.
  5. Frank Ackerman, 2009. "Financing the Climate Mitigation and Adaptation Measures in Developing Countries," G-24 Discussion Papers 57, United Nations Conference on Trade and Development.
  6. Schupp, Claudia & Wache, Benjamin, 2014. "Wie groß ist der Einfluss von deutschen Wirtschaftsforschungsinstituten? Ein Ranking anhand von RePEc-Daten
    [How large is the influence of German economic research institutes? A ranking analysis u
    ," MPRA Paper 55519, University Library of Munich, Germany.
  7. Fabio Sferra & Massimo Tavoni, 2013. "Endogenous Participation in a Partial Climate Agreement with Open Entry: A Numerical Assessment," Working Papers 2013.60, Fondazione Eni Enrico Mattei.
  8. Michaelowa, Axel & Michaelowa, Katharina, 2011. "Coding Error or Statistical Embellishment? The Political Economy of Reporting Climate Aid," World Development, Elsevier, vol. 39(11), pages 2010-2020.
  9. Richard S. J. Tol, 2010. "The Economic Impact of Climate Change," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 11(s1), pages 13-37, 05.
  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. Kasai, Katsuya, 2012. "How can LDCs benefit from the CDM?: A panel data analysis of determinants of CDM project hosting," MPRA Paper 52137, University Library of Munich, Germany, revised Dec 2012.
  12. Mark Purdon, 2010. "The clean development mechanism and community forests in Sub-Saharan Africa: reconsidering Kyoto’s “moral position” on biocarbon sinks in the carbon market," Environment, Development and Sustainability, Springer, vol. 12(6), pages 1025-1050, December.
  13. 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.
  14. Jonatan Pinkse & Ans Kolk, 2012. "Addressing the climate change sustainable development nexus: the role of multi-stakeholder partnerships," Grenoble Ecole de Management (Post-Print) hal-00707337, HAL.
  15. Flues, Florens & Michaelowa, Axel & Michaelowa, Katharina, 2008. "UN approval of greenhouse gas emission reduction projects in developing countries: The political economy of the CDM Executive Board," Proceedings of the German Development Economics Conference, Zurich 2008 12, Verein für Socialpolitik, Research Committee Development Economics.

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