Are Developing Countries Using Climate Funds for Poverty Alleviation? Evidence from Sub-Saharan Africa

Isaac Doku ()
Additional contact information
Isaac Doku: Nelson Mandela University

The European Journal of Development Research, 2022, vol. 34, issue 6, No 17, 3026-3049

Abstract: Abstract This study seeks to analyse whether countries in Sub-Saharan Africa (SSA) are using climate finance for poverty alleviation. It investigates SSA’s readiness to apply climate finance to achieve poverty alleviation goals. Data for 44 SSA countries over the period 2006–2017 were employed and analysed, using System Generalized Method of Moment. Two poverty alleviation variables are employed; GDP per capita and social inequality. Readiness was segregated into social, economic and governance readiness. The findings show that climate finance helps poverty alleviation. However, climate finance indicated a worsening effect on social inequality when countries strengthen regulatory quality and control of corruption. The study finds evidence to support that economic readiness is relatively important in eradicating poverty compared with social and governance readiness. It is recommended that climate funds should be disbursed through channels (social and governance readiness), which would yield more poverty-reduction effects, under greater supervision.

Keywords: Climate finance; Poverty alleviation; Readiness; System GMM; Sub-Saharan Africa (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://link.springer.com/10.1057/s41287-022-00509-1 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:eurjdr:v:34:y:2022:i:6:d:10.1057_s41287-022-00509-1

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/41287/PS2

DOI: 10.1057/s41287-022-00509-1

Access Statistics for this article

The European Journal of Development Research is currently edited by Spencer Henson and Natalia Lorenzoni

More articles in The European Journal of Development Research from Palgrave Macmillan, European Association of Development Research and Training Institutes (EADI) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().