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Adaptation Funding and Greenhouse Gas Emissions: Halo Effect or Complacency?

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  • Salpie Djoundourian, Walid Marrouch, and Nagham Sayour

Abstract

This paper contributes to the debate surrounding the impact of adaptation to climate change on the incentives to abate greenhouse gases emissions. Using data from the World Development Indicators and various adaptation funds under the UNFCCC framework, this paper provides an empirical analysis of the relation between adaptation and emissions. We specifically test whether adaptation measures to climate change affect emissions of greenhouse gases in a world where adaptation funds are available. Using a staggered difference-in-differences approach and an event study analysis, we find that receiving adaptation funding significantly and negatively affects several CO2 emissions measures, providing preliminary evidence of the presence of a halo effect of adaptation funding. We do not find evidence of a significant change in the emissions of methane, nitrous dioxide and other greenhouse gases.

Suggested Citation

  • Salpie Djoundourian, Walid Marrouch, and Nagham Sayour, 2022. "Adaptation Funding and Greenhouse Gas Emissions: Halo Effect or Complacency?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    • Handle: RePEc:aen:journl:ej43-4-marrouch
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    Cited by:

    1. Ma, Lina & Iqbal, Najaf & Bouri, Elie & Zhang, Yang, 2023. "How good is green finance for green innovation? Evidence from the Chinese high-carbon sector," Resources Policy, Elsevier, vol. 85(PB).

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    JEL classification:

    • F0 - International Economics - - General

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