Abstract
Energy demand is surging in the developing world, and international organizations play an important role in the funding of energy projects. However, there is virtually no empirical analysis of how different organizations choose their project portfolios. This article examines the energy funding of different international organizations, with a particular focus on the World Bank's International Development Association (IDA) and International Finance Corporation (IFC). We use data on 888 projects in 128 recipient countries funded by nine major international organizations during the years 2008-2011. Relative to other organizations, the IDA is found to invest less in fossil fuels and more in projects that improve energy access for the poorest people. The IFC emphasizes fossil fuels while downplaying the importance of energy access. Overall, fossil fuels now receive only a minority of energy funding. However, energy access is only emphasized in a tiny minority of projects.
| Original language | English |
|---|---|
| Pages (from-to) | 411-423 |
| Number of pages | 13 |
| Journal | International Environmental Agreements: Politics, Law and Economics |
| Volume | 13 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - 2013 Nov |
| Externally published | Yes |
Bibliographical note
Funding Information:The table on the left classifies all multilaterally funded energy projects. The table on the right excludes the projects funded by the European Investment Bank, and the European Bank for Reconstruction and Development
Funding Information:
Classification of multilaterally funded energy projects (funding amounts of projects)
Funding Information:
Funding amounts are in billion USD 2010. The table on the left classifies all multilaterally funded energy projects. The table on the right excludes the projects funded by the European Investment Bank, and the European Bank for Reconstruction and Development
Funding Information:
This section explores how different funders choose their energy project portfolios. Table 5 compares both the number of fossil fuel and clean energy projects and the money spent in them. The results are reported for all nine international organizations. Compared to other organizations, the IFC is more likely to fund fossil fuel projects. Among the 109 energy projects funded by the IFC, 40.4 % are fossil fuel projects and 67.2 % of energy funds go to fossil fuels. The IDA, on the other hand, supports more fossil fuel projects (31.4 %) than other funders (26.6 %) on average, but the actual amount of funds spent on fossil fuel projects (24.5 %) is less than average spending on fossil fuels (38.9 %).
Keywords
- Clean energy
- Development assistance
- Energy policy
- Fossil fuels
- International organizations
- World Bank
ASJC Scopus subject areas
- Economics and Econometrics
- Political Science and International Relations
- Law
