Empirical analysis of the effect of institutional governance indicators on climate financing

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dc.contributor.author Lubinga, Moses Herbert
dc.contributor.author Mazenda, Adrino
dc.date.accessioned 2024-10-21T11:53:09Z
dc.date.available 2024-10-21T11:53:09Z
dc.date.issued 2024-02
dc.description DATA AVAILABILITY STATEMENT : Data is contained within the article. en_US
dc.description.abstract Sustainable Development Goal 13 echoes the fact that all countries must make urgent and stringent efforts to mitigate against and adapt to climate change and its associated impacts. Climate financing is one of the key mechanisms used to enable countries to remain resilient to the hastening effects of climate change. In this paper, we empirically assess the effect of institutional governance indicators on the amount of climate finance received by 21 nations for which progress towards the internationally agreed-upon target of reducing global warming to 1.5 °C is tracked. We use the fixed-effects ordinary least squares (OLS) and the feasible generalized least squares (FGLS) estimators, drawing on the Climate Action Tracker panel data from 2002 to 2020. Empirical results reveal that perceived political stability significantly enhanced climate finance inflows among countries that strongly increased their NDC targets, while perceived deterioration in corruption control negatively impacted the amount of climate finance received by the same group of countries. Therefore, governments should reduce corruption tendencies while striving to avoid practices and alliances that lead to any form of violence, including terrorism and civil war. Low developing countries (LDCs) in particular need to improve the standard of public services provided to the populace while maintaining a respectable level of autonomy from political influences. Above all, as countries work towards strengthening institutional governance, there is an urgent need for developed economies to assist developing economies in overcoming debt stress since the likelihood of future resilience and prosperity is being undermined by the debt crisis, with developing countries spending almost five times as much annually on repayment of debt as they allocate to climate adaptation. en_US
dc.description.department School of Public Management and Administration (SPMA) en_US
dc.description.librarian hj2024 en_US
dc.description.sdg SDG-13:Climate action en_US
dc.description.uri https://www.mdpi.com/journal/economies en_US
dc.identifier.citation Lubinga, Moses Herbert, and Adrino Mazenda. 2024. Empirical Analysis of the Effect of Institutional Governance Indicators on Climate Financing. Economies 12: 29. https://doi.org/10.3390/economies12020029. en_US
dc.identifier.issn 2227-7099 (online)
dc.identifier.other 10.3390/economies12020029
dc.identifier.uri http://hdl.handle.net/2263/98688
dc.language.iso en en_US
dc.publisher MDPI en_US
dc.rights © 2024 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/). en_US
dc.subject Climate finance en_US
dc.subject Climate action tracker en_US
dc.subject Corruption en_US
dc.subject Feasible generalized least squares (FGLS) estimator en_US
dc.subject Panel data en_US
dc.subject Sustainable development goals (SDGs) en_US
dc.subject Low developing countries (LDCs) en_US
dc.subject SDG-13: Climate action en_US
dc.title Empirical analysis of the effect of institutional governance indicators on climate financing en_US
dc.type Article en_US


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