The heterogeneous impacts of climate finance on energy efficiency and renewable energy production in developing countries

Dinkneh Gebre Borojo, Jiang Yushi, Xueting Gong, Hongyu Zhang and Miao Miao

Renewable Energy, 2024, vol. 236, issue C

Abstract: Climate finance (CF) is considered to be a key financial innovation to enhance energy efficiency (EE) and facilitate the pathway to energy transition (ET). However, the varied impacts of CF on EE and renewable energy production (REP) have been masked. Thus, this study examines the heterogeneous impacts of CF on EE and REP for 81 developing countries (DCs) for the period 2002–2019. The method of moments quantile regression (MMQR) approach is used to control for distributional and unobserved individual heterogeneity. We calculate EE using parametric stochastic frontier analysis (SFA). Also, the effects of CF on EE and REP are investigated subject to income heterogeneity and based on Copenhagen (COP15) and Paris (COP21) climate accords. The findings revealed that DCs with lower REP benefit the most from increased CF, and the positive effects break down for countries with the largest distributions of REP. Besides, CF positively contributes to EE across all quantiles of DCs. The results further imply that the impacts of CF are income-dependent, with positive effects on the EE and REP of middle-income economies and more pronounced after the COP15 and COP21 climate accords. Several policy implications are forwarded based on the findings.

Keywords: Climate finance; Energy efficiency; Renewable energy production; Developing countries; Method of moments quantile regression (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0960148124014952
Full text for ScienceDirect subscribers only

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:eee:renene:v:236:y:2024:i:c:s0960148124014952

DOI: 10.1016/j.renene.2024.121427

Access Statistics for this article

Renewable Energy is currently edited by Soteris A. Kalogirou and Paul Christodoulides

More articles in Renewable Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().