The impact of official development assistance on the economic growth and carbon dioxide mitigation for the recipient cou
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RESEARCH ARTICLE
The impact of official development assistance on the economic growth and carbon dioxide mitigation for the recipient countries Sue Kyoung Lee 1 & Gayoung Choi 1 & Eunmi Lee 1 & Taeyoung Jin 1 Received: 2 June 2020 / Accepted: 14 July 2020 # The Author(s) 2020
Abstract The purpose of this study is to investigate the relationship between official development assistance (ODA) on CO2 emissions based on both direct and indirect frameworks, using the annual panel data of 30 recipient countries of Korea from 1993 to 2017. It employs a modified impact, population, affluence, and technology (IPAT) model and a simultaneous equation framework for the direct model and indirect model, respectively. The empirical results suggest that ODA has both a direct and an indirect mitigation impact in the recipient countries. Compared to the direct impact, a small indirect mitigation impact of ODA on CO2 emissions is derived. However, the estimation results of the environmental Kuznets curve (EKC) equation imply that economic growth has the potential of mitigating the environmental degradation when the economic development in recipient countries of Korea reaches a certain level. Therefore, the bilateral cooperation, through ODA and the supportive policy, should make an effort to promote economic development and mitigation of environmental degradation in developing countries. Keywords Official Development Assistance . Recipient countries . Economic growth . CO2 emissions . Environmental Kuznets curve
Introduction Since the Paris Agreement was adopted in December 2015, at the 21st Conference of Parties to the United Nations Framework Convention on Climate Change (UNFCCC), the climate change regime has shifted from the actions within the Kyoto Protocol to the new era. Although past negotiations at the UNFCCC have failed to draw binding forces, experts prospect that the Paris Agreement will be a turning point in global efforts to mitigate climate change (Kinley 2016).
Responsible Editor: Nicholas Apergis * Taeyoung Jin [email protected] Sue Kyoung Lee [email protected] Gayoung Choi [email protected]
Literally, this is the first global accord containing policy obligations for all countries that have ratified it (177 countries out of 193 official countries). The Paris Agreement covers mitigation of greenhouse gas (GHG) emission, adaptation on climate change, and global cooperation via financing (Işik et al. 2018). It entered into force under the UNFCCC to find solutions for climate change and accelerate sustainable development (Dimitrov 2016). As mentioned in the Paris Agreement, the main aim of the agreement is “to strengthen the global response to the threat of climate change by keeping a global temperature rise this century well below 2 °C above pre-industrial levels and to pursue efforts to limit the temperature increase even further to 1.5 °C.”1 In other words, since global efforts to prevent climate change due to global warming are required, curbing the temperature change in the atmosphere, which is closely rela
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