A Sectoral Approach of Adaptation Finance in Developing Countries: Does Climate Justice Apply?

Abstract

In this study, we explore climate justice with specific reference to vulnerability at the level of different sectors in 90 developing countries in Asia, Africa and Europe, over a period from 2010 to 2019. The paper seeks to advance the discussion on the idea that adaptation financing is allocated according to the level of need in the recipient country and sector. By considering five crucial sectors (food, water, health, infrastructure and habitat), we explore the linear and quadratic effect of the vulnerability of each sector on the allocated endowment. The study is based on a dynamic panel regression method based on the Generalized Method of Moments (GMM) in the system model. Our findings reveal that vulnerability is an important consideration in funding allocation. The results suggest that the relationship between adaptation funding and vulnerability is sector-dependent. We also observe that this relationship is non-linear, providing further evidence of distributive justice in terms of allocating more funding to the most vulnerable sectors. Climate justice begins to emerge when vulnerability reaches a certain threshold. However, it appears that the infrastructure sector is dysfunctional in terms of adaptation financing needs and investments undertaken. Overall, the regulations put in place should further integrate climate risk parameters into technical and procedural standards to make projects more effective and climate justice more widespread.

Ownership Structure and Carbon Emissions of SMEs: Evidence from OECD Countries

“…Surprisingly, we find a negative relationship between GDP and carbon emissions, which is not in line with anterior studies [80]. This result could be explained by the fact that countries with significant economic growth have a solid economic readiness and thus dispose of adaptation finance, which consolidates their means to reduce carbon emissions and face climate changes [83]. In addition, the weaker association and significance of the public sector to carbon emissions could indicate that the impact of the CSR measures takes time to materialize.…”

The Effectiveness of Climate Adaptation Finance and Readiness on Vulnerability in African Economies

“…Although scholars have explored the link between vulnerability and adaptation finance, focusing on whether vulnerability determines the adaptation finance received, [21,81] the findings are still controversial. Moreover, while it is recognized that investing in adaptation measures is crucial for reducing vulnerability and building resilience to the adverse effects of climate change, scholarly emphasis on trends in achieving this goal is minimal.…”