IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/21139.html
   My bibliography  Save this paper

Cofinancing in Environment and Development: Evidence from the Global Environment Facility

Author

Listed:
  • Matthew J. Kotchen
  • Neeraj Kumar Negi

Abstract

Leveraged cofinancing from public and private sources has emerged as a policy priority among international environment and development agencies. There is nevertheless surprisingly little research on the determinants and impacts of cofinancing for accomplishing environment and development goals. This paper contributes to the literature with a focus on three interrelated questions: (1) How does observed cofinancing depend on characteristics of the development project, the country where the project takes place, and the agencies responsible for project funding and execution? (2) What factors explain the likelihood that project cofinancing is based on loans rather than grants, and that cofinancing comes from the private sector rather than public agencies or non-governmental organizations? (3) Does greater cofinancing result in better environment and development projects? To answer these questions, we take advantage of data from the Global Environment Facility (GEF) on 3,269 projects from 1991 through the beginning of 2014. The results provide insight not only on how agencies may target cofinancing going forward, but also on how greater emphasis on cofinancing may implicitly shift environment and development priorities.

Suggested Citation

  • Matthew J. Kotchen & Neeraj Kumar Negi, 2015. "Cofinancing in Environment and Development: Evidence from the Global Environment Facility," NBER Working Papers 21139, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:21139 Note: EEE
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w21139.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Jonathan Isham & Daniel Kaufmann, 1999. "The Forgotten Rationale for Policy Reform: The Productivity of Investment Projects," The Quarterly Journal of Economics, Oxford University Press, vol. 114(1), pages 149-184.
    2. Rachid LAAJAJ & Patrick GUILLAUMONT, 2006. "When instability increases the effectiveness of aid projects," Working Papers 200637, CERDI.
    3. Philipp Harms & Matthias Lutz, 2006. "Aid, Governance and Private Foreign Investment: Some Puzzling Findings for the 1990s," Economic Journal, Royal Economic Society, vol. 116(513), pages 773-790, July.
    4. Sebastián J. Miller & Bok-Keun Yu, 2012. "Mobilizing Resources for Supporting Environmental Activities in Developing Countries: The Case of the GEF Trust Fund," IDB Publications (Working Papers) 4091, Inter-American Development Bank.
    5. Papanek, Gustav F, 1973. "Aid, Foreign Private Investment, Savings, and Growth in Less Developed Countries," Journal of Political Economy, University of Chicago Press, vol. 81(1), pages 120-130, Jan.-Feb..
    6. Dierk Herzer & Michael Grimm, 2012. "Does foreign aid increase private investment? Evidence from panel cointegration," Applied Economics, Taylor & Francis Journals, vol. 44(20), pages 2537-2550, July.
    7. Selaya, Pablo & Sunesen, Eva Rytter, 2012. "Does Foreign Aid Increase Foreign Direct Investment?," World Development, Elsevier, pages 2155-2176.
    8. Mark T. Buntaine & Bradley C. Parks, 2013. "When Do Environmentally Focused Assistance Projects Achieve their Objectives? Evidence from World Bank Post-Project Evaluations," Global Environmental Politics, MIT Press, pages 65-88.
    9. Deininger, Klaus & Squire, Lyn & Basu, Swati, 1998. "Does Economic Analysis Improve the Quality of Foreign Assistance?," World Bank Economic Review, World Bank Group, vol. 12(3), pages 385-418, September.
    10. Sebastian Miller & Bok-Keun Yu, 2012. "Mobilizing Resources for Supporting Environmental Activities in Developing Countries: The Case of the GEF Trust Fund," Research Department Publications 4780, Inter-American Development Bank, Research Department.
    11. Khwaja, Asim Ijaz, 2009. "Can good projects succeed in bad communities?," Journal of Public Economics, Elsevier, pages 899-916.
    Full references (including those not matched with items on IDEAS)

    More about this item

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:21139. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/nberrus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.