Do vulnerable countries receive more environmental ODA?

Abstract

Alongside the plans for resilient recovery from COVID-19 and low-carbon transition discussed in each country, the need and importance of Green ODA is on the rise as well. Especially, vitalizing diverse and innovative modalities in addition to the traditional grant and loan-based ODA got its well-deserved attention. Among them, Aid for trade (AfT) is one of the newly emerged methods proven to effectively bolster economic growth and nurture sustainability as well. This paper examines the allocation of AfT with explicit environmental objectives with regards to vulnerability of the recipient countries by using proxies for sensitivity, exposure, and adaptive capacity. Evidence that vulnerability plays a role in allocation decisions was found through a multiple regression model using panel data from recipient 155 countries and 29 donor countries.