The impact of climate mitigation finance on greenhouse gas

Muhammad Asif Khan, Masood Ahmed and Rob Hull

Journal of Environmental Planning and Management, 2024, vol. 67, issue 14, 3581-3599

Abstract: We address the research problem concerning climate mitigation finance (CMF) and greenhouse gas (GHG) emissions. Our research question is: Does an increase in CMF reduce GHG? This question generates two goals. First, to verify the predicted negative association using data that measures CMF in USD and GHG in kilotons. Second, to test the robustness of the predicted direction. To achieve our goals, we use a methodology consisting of a graphic analysis of the data over time and a panel data regression model accompanied by robust tests. Our baseline model finds evidence to support our first goal. Robust tests support our second goal by confirming that CMF decreases GHG. Noteworthy, robust tests also show that GHG outperforms the variable used by prior research, which is CO2. Our data, tests, and findings are new and so value-additive in their contributions to the international literature on climate mitigation finance and greenhouse gas emissions.

Date: 2024
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DOI: 10.1080/09640568.2023.2227759

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