The pitfalls and potential of debt-for-nature swaps: A US-Indonesian case study

Cassimon, Danny; Prowse, Martin; Essers, Dennis

doi:10.1016/j.gloenvcha.2010.10.001

Cited by 54 publications

(47 citation statements)

References 34 publications

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“…More recently, such a bilateral deal was signed between the United States and Indonesia, swapping nearly US$ 30 million of Indonesian government debt owed to the United States over the next eight years against Indonesia's commitment to spend this sum on NGO projects bene…ting Sumatra's tropical forests (see Cassimon et al, 2009).…”

Section: Introductionmentioning

confidence: 99%

Environmental Quality, Public Debt and Economic Development

Fodha

Seegmuller

2013

Environ Resource Econ

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This article analyzes the consequences on capital accumulation and environmental quality of environmental policies …nanced by public debt. A public sector of pollution abatement is …nanced by a tax and/or public debt. We show that if the initial capital stock is high enough, the economy monotonically converges to a long-run steady state. On the contrary, when the initial capital stock is low, the economy is relegated to an environmental-poverty trap. We also explore the implications of public policies on the trap and on the long-run stable steady state. In particular, we …nd that government should decrease debt and increase pollution abatement to promote capital accumulation and environmental quality at the stable long-run steady state.JEL classi…cation: H23, H63, Q56.

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Section: Introductionmentioning

confidence: 99%

Environmental Quality, Public Debt and Economic Development

Fodha

Seegmuller

2013

Environ Resource Econ

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“…However, several experiences can help shedding some light on the relevance of the mechanism. For instance, Cassimon et al (2011) identify several shortcomings among which additionality. Moreover, Barbier (2011) draws attention on the need to find new sources of funding to make REDD like mechanisms more effective.…”

Section: Resultsmentioning

confidence: 99%

Deforestation and seigniorage in developing countries: A tradeoff?

Combes

Motel

Minea

et al. 2015

Ecological Economics

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“…Our position on this is outlined in Cassimon et al (2011a), and runs as follows. As the HIPC Initiative has ensured that most bilateral and multilateral debt owed by many low-income countries will be cancelled in due course, it appears that the greatest potential for utilising debt swaps for mitigation (such as debt-for-nature or debt-for-efficiency swaps) will mainly be within lower middle-income countries.…”

Section: Discussionmentioning

confidence: 99%

“…We assess the impact of the debt swap on sustainable development and the availability of project finance by using a simple five-part framework (see Cassimon et al, 2011a): first, whether it delivers additional resources to the debtor country and/or government budget; second, whether it delivers more resources for climate change mitigation; third, whether it has a sizeable effect on overall debt burdens (thereby creating 'indirect' benefits); and, fourth and fifth, whether it adheres to the principles of alignment with both government policy and systems (two key elements within the new aid paradigm). The first two parts of this framework assess the contribution of the swap to project funding.…”

Section: A U T H O R C O P Ymentioning

confidence: 99%

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Financing the Clean Development Mechanism through Debt-for-Efficiency Swaps? Case Study Evidence from a Uruguayan Wind Farm Project

2013

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As one of Kyoto's three flexibility mechanisms, the Clean Development Mechanism (CDM) allows the issuance of Certified Emission Reduction credits from offset projects in non-Annex I countries. As little attention has been paid to how CDM projects are financed, this article assesses whether offset schemes with public bodies should utilise debt swaps as a form of funding. Specifically, we examine whether a debt-for-efficiency swap between Uruguay and Spain within a wind power project increased project finance and generated greater development co-benefits. We assess the transaction using a simple evaluative framework: whether it delivered additional resources to the debtor country and/or government budget; whether it delivered more resources for climate change mitigation; whether it had a sizeable effect on overall debt burdens (creating 'indirect' benefits); and whether it aligned with government policy and systems (elements of the new aid approach). We find evidence that cautions against using the Spanish-Uruguayan case as a model for future debt-for-efficiency swaps.Parmi les trois mécanismes de flexibilité du Protocole de Kyoto, le Mécanisme de Développement Propre (MDP) permet la diffusion des crédits de carbone provenant des projets compensatoires dans des pays nonAnnexe I. Manque de réflexion sur les modes de financement des projets MDP, cet article vise à évaluer l'utilisation, par des bailleurs de fonds officiels comme intervention d'aide publique au développement, des opérations de conversion de la dette officielle comme mode de financement utile. Plus particulièrement, nous examinons dans quel mesure une opération de conversion de dette au bénéfice des économies d'énergie entre l'Uruguay et l'Espagne dans le secteur d'énergie éolienne, inclue dans un projet MDP, a bénéficié au financement du projet et à la disponibilité des ressources additionnelles pour le pays débiteur et pour la mitigation climatique, a créé des avantages complémentaires sur le plan du développement, et s'inscrit dans la nouvelle approche « d'alignement » de l'aide au développement aux politiques et systèmes du pays récepteur. Nos résultats mettent en garde contre l'adoption du cas espagnol-uruguayen comme modèle exemplaire pour des opérations futures de conversion de dette au bénéfice des énergies propres dans le cadre MDP.

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The pitfalls and potential of debt-for-nature swaps: A US-Indonesian case study

Cited by 54 publications

References 34 publications

Environmental Quality, Public Debt and Economic Development

Environmental Quality, Public Debt and Economic Development

Deforestation and seigniorage in developing countries: A tradeoff?

Financing the Clean Development Mechanism through Debt-for-Efficiency Swaps? Case Study Evidence from a Uruguayan Wind Farm Project

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