Adaptation Funding and Greenhouse Gas Emissions: Halo Effect or Complacency?

Document Type

Article

Source of Publication

Energy Journal

Publication Date

1-1-2022

Abstract

This paper contributes to the debate surrounding the impact of adaptation to climate change on the incentives to abate greenhouse gases emissions. Using data from the World Development Indicators and various adaptation funds under the UNFCCC framework, this paper provides an empirical analysis of the relation between adaptation and emissions. We specifically test whether adaptation measures to climate change affect emissions of greenhouse gases in a world where adaptation funds are available. Using a staggered difference-in-differences approach and an event study analysis, we find that receiving adaptation funding significantly and negatively affects several CO2 emissions measures, providing preliminary evidence of the presence of a halo effect of adaptation funding. We do not find evidence of a significant change in the emissions of methane, nitrous dioxide and other greenhouse gases.

ISSN

0195-6574

Publisher

International Association for Energy Economics (IAEE)

Volume

43

Issue

4

First Page

215

Last Page

230

Disciplines

Business

Keywords

Adaptation, Climate Change, GHG Emissions, Halo Effect

Scopus ID

85132900087

Indexed in Scopus

yes

Open Access

no

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