This article attempts to disentangle the determinants of the adoption of renewable energy support policies in developing and emerging countries. By analyzing policies already implemented in industrialized countries, we focus on the diffusion but not the invention of climate-relevant policies. We look at four different types of policies (renewable energy targets, feed-in tariffs, other financial incentives and framework policies) and consider both domestic factors and international diffusion mechanisms utilizing a discrete-time events history model with a logit link on a self-compiled dataset of grid-based electricity policy adoption in 112 developing and emerging countries from 1998 to 2009. In general, we find stronger support for the domestic determinants of policy adoption, but also substantial influence of international factors. Countries with a larger population and more wealth have a higher probability of adopting renewable energy policies. Only in some specific cases do natural endowments for producing renewable energy encourage governments to adopt policies, and hydro power resources even correlate negatively with the adoption of targets. Among the international determinants, emulation from colonial peers and membership within the EU seem to facilitate policy adoption. International climate finance is less relevant, as the Global Environmental Facility and the Clean Development Mechanism may only increase the adoption of frameworks and targets, but they have no influence on tariffs and incentives.
AbstractThis article attempts to disentangle the determinants of the adoption of renewable energy support policies in developing and emerging countries. By analyzing policies already implemented in industrialized countries, we focus on the diffusion but not the invention of climate-relevant policies. We look at four different types of policies (renewable energy targets, feed-in tariffs, other financial incentives and framework policies) and consider both domestic factors and international diffusion mechanisms utilizing a discrete-time events history model with a logit link on a self-compiled dataset of grid-based electricity policy adoption in 112 developing and emerging countries from 1998 to 2009. In general, we find stronger support for the domestic determinants of policy adoption, but also substantial influence of international factors. Countries with a larger population and more wealth have a higher probability of adopting renewable energy policies. Only in some specific cases do natural endowments for producing renewable energy encourage governments to adopt policies, and hydro power resources even correlate negatively with the adoption of targets. Among the international determinants, emulation from colonial peers and membership within the EU seem to facilitate policy adoption. International climate finance is less relevant, as the Global Environmental Facility and the Clean Development Mechanism may only increase the adoption of frameworks and targets, but they have no influence on tariffs an...
This paper analyses potential criteria to allocate international funding for adaptation to climate change, as a response to one of the main governance challenges of international adaptation funding -the prioritization of project proposals given scarce funding. Based on the review of the equity and cost-effectiveness literature and relevant policy documents, we identify three indicators for equity (vulnerability level, poverty, number of beneficiaries), and three indicators for cost-effectiveness (economic savings in absolute and relative terms, human lives saved). Applying these simple indicators to information provided in 16 project documents considered by the Adaptation Fund Board (AFB) in 2011, we find that projects approved by the AFB rank high according to one cost-effectiveness indicator (absolute economic savings), while they rather rank low according to all equity and further costeffectiveness indicators. Furthermore, we analyse whether 'equity' and 'cost-effectiveness' are two contradicting principles, or if ways can be found to reconcile both principles in multilateral adaptation finance. We conclude from both theory and the 16 analysed projects that a pure economic definition of cost-effectiveness is in contradiction with equity but tradeoffs between equity and cost-effectiveness can be limited if relative wealth savings, and other indicators, e.g. human health, are used as indicator for cost-effectiveness.
Developed countries have relied heavily on aid budgets to fulfill their pledges to boost funding for addressing climate change in developing countries. However, little is known about how interaction between aid and other ministries has shaped contributors' diverse approaches to climate finance. This paper investigates intra-governmental dynamics in decision-making on climate finance in seven contributor countries (Australia, Denmark, Germany, Japan, Switzerland, the UK and the US). While aid agencies retained considerable control over implementation, environment and finance ministries have played an influential and often contrasting role on key policy issues, including distribution between mitigation and adaptation and among geographical regions.
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