Mobilizing the Private Sector: Quantity-Performance Instruments for Public Climate Funds

Duke Environmental and Energy Economics Working Paper EE 12-09

16 Pages Posted: 23 Jul 2014

See all articles by Arunabha Ghosh

Arunabha Ghosh

Council on Energy, Environment and Water

Benito Muller

Oxford Climate Policy

William A. Pizer

Duke University

Gernot Wagner

Harvard John A. Paulson School Of Engineering And Applied Sciences; Harvard Kennedy School

Date Written: September 2012

Abstract

In recent years, public sector funding, in general, and for the support of activities in developing countries, in particular, has become more and more “results” and “performance” oriented. There are different methods by which performance can be “indicated” (or even “measured”). The focus of this brief is on activities that are associated with quantitative performance indicators, i.e., performance assessed in terms of measured quantities — such as tonnes (of carbon), kilowatt-hours, or hectares — as carried out by the private sector. The aim of this brief is to review options for the use of such Quantity-Performance (QP) instruments as a way of channeling public funds to mitigate greenhouse gas emissions in a cost-effective way. QP instruments reward quantified mitigation performance, typically measured in tonnes of carbon dioxide-equivalent of achieved emissions reductions. As such, they imply exactly the kind of results monitoring that the current trend in public funding demands. They could be used by governments or multilateral funds, such as the Green Climate Fund, to mobilize the private sector and private sector finance for mitigation activities in developing countries.

Suggested Citation

Ghosh, Arunabha and Muller, Benito and Pizer, William A. and Wagner, Gernot, Mobilizing the Private Sector: Quantity-Performance Instruments for Public Climate Funds (September 2012). Duke Environmental and Energy Economics Working Paper EE 12-09. Available at SSRN: https://ssrn.com/abstract=2469229 or http://dx.doi.org/10.2139/ssrn.2469229

Arunabha Ghosh (Contact Author)

Council on Energy, Environment and Water ( email )

Thapar House
124 Janpath
New Delhi, 110001
India

Benito Muller

Oxford Climate Policy ( email )

Wolfson College
Oxford, OX2 6UD
United Kingdom

HOME PAGE: http://www.oxfordclimatepolicy.org

William A. Pizer

Duke University ( email )

100 Fuqua Drive
Durham, NC 27708-0204
United States

Gernot Wagner

Harvard John A. Paulson School Of Engineering And Applied Sciences ( email )

29 Oxford Street
Cambridge, MA 02138
United States

Harvard Kennedy School ( email )

79 JFK Street
Cambridge, MA 02138
United States

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