Kofi KONADU-BRITWUM

The objective of the internship is to empirically study, via an econometric analysis, the determinants of the payment of international aid for the mitigation of climate change from developed countries to developing countries. The aim is to adopt a bilateral (donor-recipient country) and sectoral approach to aid by differentiating the “land-based” sectors (the agricultural, forestry and fishery sectors) from other sectors. The potential determinants of this aid are the mitigation needs in the different sectors of donor and recipient countries, such as sectoral emission levels, but also strategic factors, such as the commercial interests of donor countries (increasing market shares export or import at lower cost). Empirical results show that bilateral trade plays a major role in the likelihood that a country will receive mitigation aid and also in the amount of aid it receives. The results also show that more aid is allocated to sectors where there is more trade flow. Finally, this econometric analysis highlights the result that donor and recipient emissions play no significant role in determining the sectoral allocation of mitigation aid when bilateral trade is taken into account.