International energy lending: Who funds fossil fuels, who funds energy access for the poor?

Sung Eun Kim, Johannes Urpelainen

Research output: Contribution to journalArticle

5 Citations (Scopus)

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 languageEnglish
Pages (from-to)411-423
Number of pages13
JournalInternational Environmental Agreements: Politics, Law and Economics
Volume13
Issue number4
DOIs
Publication statusPublished - 2013 Nov 1
Externally publishedYes

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Keywords

  • Clean energy
  • Development assistance
  • Energy policy
  • Fossil fuels
  • International organizations
  • World Bank

ASJC Scopus subject areas

  • Economics and Econometrics
  • Law
  • Political Science and International Relations

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