Mobilizing Resources for Supporting Environmental Activities in Developing Countries:

45 Pages Posted: 19 Sep 2012

See all articles by Sebastian Miller

Sebastian Miller

Inter-American Development Bank (IDB)

Bok-Keun Yu

The Bank of Korea

Date Written: June 2012

Abstract

Mobilizing sufficient resources is essential for supporting environmental activities in developing countries, and cofinancing is generally considered an important tool to help developing countries increase the resources they need. Moreover, cofinancing should increase ownership of projects by local authorities while improving accountability. The literature, however, has not explored why certain projects receive higher levels of cofinancing than others. This paper attempts to fill this gap by examining the cofinancing ratio and its determinants using projects financed by the GEF Trust Fund. The empirical results confirm that the rules of the fund, requiring different minimum cofinancing ratios by size and focal area of the GEF projects, do matter. Other important factors include funds’ origins (foreign vs. domestic), types of cofinancing sources (reimbursable vs. non- reimbursable) and the particular GEF agencies involved.

JEL Classification: F30, G20, Q50

Suggested Citation

Miller, Sebastian and Yu, Bok-Keun, Mobilizing Resources for Supporting Environmental Activities in Developing Countries: (June 2012). IDB Working Paper No. IDB-WP-329, Available at SSRN: https://ssrn.com/abstract=2149063 or http://dx.doi.org/10.2139/ssrn.2149063

Sebastian Miller (Contact Author)

Inter-American Development Bank (IDB) ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

Bok-Keun Yu

The Bank of Korea ( email )

39, Namdaemun-ro, Jung-gu
Seoul, 04531
Korea, Republic of (South Korea)

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