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Greening Development Lending in the Americas: Trends and Determinants

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  • Yuan, Fei
  • Gallagher, Kevin P.

Abstract

Latin America and the Caribbean (LAC) faces a $110 billion-dollar annual gap in financing for climate change. This paper shows that development banks operating in the Americas are falling far short of playing the key role they need to assume in filling these gaps. According to our estimates, development banks provide just $7 billion per year in terms of green finance in general, and climate finance in particular is just $4.4 billion per year. A corresponding econometric analysis shows green financial flows tend to go to countries with higher human development scores and left of center governments, and derive from development banks where the majority of the shareholder governments have strong environmental performance in their home country.

Suggested Citation

  • Yuan, Fei & Gallagher, Kevin P., 2018. "Greening Development Lending in the Americas: Trends and Determinants," Ecological Economics, Elsevier, vol. 154(C), pages 189-200.
    • Handle: RePEc:eee:ecolec:v:154:y:2018:i:c:p:189-200
    DOI: 10.1016/j.ecolecon.2018.07.009
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    5. Rongrong Liu & Dong Chen & Suchang Yang & Yang Chen, 2021. "Evaluation of Green Development Efficiency of the Major Cities in Gansu Province, China," Sustainability, MDPI, vol. 13(6), pages 1-18, March.
    6. Hao Liu & Weilun Huang, 2022. "Sustainable Financing and Financial Risk Management of Financial Institutions—Case Study on Chinese Banks," Sustainability, MDPI, vol. 14(15), pages 1-18, August.
    7. Ebeling Antoine, 2022. "European investment Bank loan appraisal, the EU climate bank ?," Working Papers of BETA 2022-10, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    8. Hayot Berk Saydaliev & Lee Chin, 2023. "Role of green financing and financial inclusion to develop the cleaner environment for macroeconomic stability: Inter-temporal analysis of ASEAN economies," Economic Change and Restructuring, Springer, vol. 56(6), pages 3839-3859, December.
    9. Myung Ja Kim & C. Michael Hall & Heejeong Han, 2021. "Behavioral Influences on Crowdfunding SDG Initiatives: The Importance of Personality and Subjective Well-Being," Sustainability, MDPI, vol. 13(7), pages 1-21, March.
    10. Grace Ibe-enwo & Nicholas Igbudu & Zanete Garanti & Temitope Popoola, 2019. "Assessing the Relevance of Green Banking Practice on Bank Loyalty: The Mediating Effect of Green Image and Bank Trust," Sustainability, MDPI, vol. 11(17), pages 1-16, August.

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