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Environmental Aid and Economic Development in the Third World

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  • 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.

Suggested Citation

  • B. Mak ARVIN & Zafar KAYANI & Marisa A. SCIGLIANO, 2009. "Environmental Aid and Economic Development in the Third World," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 9(1).
    • Handle: RePEc:eaa:ijaeqs:v:9:y2009:i:1_1
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    File URL: http://www.usc.es/economet/reviews/ijaeqs911.pdf
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    References listed on IDEAS

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    1. 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, Decembrie.
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    3. Stern,Nicholas, 2007. "The Economics of Climate Change," Cambridge Books, Cambridge University Press, number 9780521700801.
    4. 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.
    5. Panos Hatzipanayotou & Sajal Lahiri & Michael S. Michael, 2002. "Can cross–border pollution reduce pollution?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 35(4), pages 805-818, November.
    6. Axel Dreher & Noel Gaston & Pim Martens, 2008. "Measuring Globalisation," Springer Books, Springer, number 978-0-387-74069-0, June.
    7. B. Mak Arvin & Francisco Barillas, 2002. "Foreign aid, poverty reduction, and democracy," Applied Economics, Taylor & Francis Journals, vol. 34(17), pages 2151-2156.
    8. Nicholas Stern, 2008. "The Economics of Climate Change," American Economic Review, American Economic Association, vol. 98(2), pages 1-37, May.
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    Cited by:

    1. Yongfu Huang & Muhammad G. Quibria, 2015. "The global partnership for sustainable development," Natural Resources Forum, Blackwell Publishing, vol. 0(3-4), pages 157-174, August.
    2. Neequaye, Nii Amon & Oladi, Reza, 2015. "Environment, growth, and FDI revisited," International Review of Economics & Finance, Elsevier, vol. 39(C), pages 47-56.
    3. Yongfu Huang & Muhammad G. Quibria, 2015. "The global partnership for sustainable development," Natural Resources Forum, Blackwell Publishing, vol. 39(3-4), pages 157-174, August.

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    More about this item

    Keywords

    Economic Development; Aid; Developing Countries;
    All these keywords.

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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