Transformational Climate Finance : Donors' Willingness to Support Deep and Transformational Greenhouse Gas Emissions Reductions in Lower-Income Countries

Strand, Jon

World Bank, Washington, DC

关键词: GREENHOUSE GAS EMISSIONS;    CLIMATE ACTION;    CLIMATE CHANGE;    CLIMATE CHANGE MITIGATION;    MITIGATION POLICY;   

DOI  :  10.1596/1813-9450-9251
RP-ID  :  WPS9251

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper uses simple analytical modelsto study high-income donor countries' willingness topay to supply mitigation finance to low-income countries;how this depends on modality for finance supply; and how itchanges as the global greenhouse gas mitigation agenda movesforward. The paper focuses on two modalities:transformational project-based mitigation finance(transitioning from fossil to non-fossil energy use atscale), and transformational policy-based mitigation financesupport (implementing comprehensive carbon taxation). Thesemodalities are compared with conventional finance for whichdonors have lower willingness to pay. High-incomecountries' willingness to pay is higher when mitigationis combined with carbon taxation; private-sector finance isalso more highly incentivized. Reaching the transformationalmitigation finance stage can be challenging, as it mayrequire large provision of mitigation finance with negativenet returns to high-income countries. Willingness to paywill be higher when high-income countries collaborate in theprovision of mitigation finance. The findings show that moreeffective collaboration can be sustained when it is enforcedby an international financial institution that collects andspends the provided mitigation finance to induce efficientmitigation activity in low-income countries andcollaboration among donors is enforced by simple tit-for-tatreaction strategies.