January 30, 2011

Raising Finance to Support Developing Country Action: Some Economic Considerations

by Alex Bowen

- This article explores the principles that should guide efforts to raise finance for climate action in developing countries. The main conclusions are that, first, there is an important role for private finance, which would be facilitated by having pervasive and broadly uniform emissions pricing around the world. Second, public finance is warranted by a range of market - and policy - failures associated with climate change and its mitigation. Third, raising tax revenues may be preferable to borrowing as a means of raising public finance, although the economics is not clear-cut.

Bowen, A. (2011). "Raising Finance to Support Developing Country Action: Some Economic Considerations." Grantham Research Institute on Climate Change and the Environment Working Paper No. 36, Jan 2011.