Does energy aid improve energy efficiency in developing countries?
Date
2021
Authors
Maruta, A.A.
Banerjee, R.
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Journal article
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Empirical Economics, 2021; 61(1):355-388
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Abstract
The study examines the effect of energy aid on the energy efficiency of 70 developing countries in the period 1990–2016. We consider two-stage least squares identification strategy to examine the energy aid-energy efficiency nexus empirically. Energy aid is instrumented by similar voting preferences between donors and recipient countries in the United Nations General Assembly. Our finding suggests that energy aid has a significant positive effect on the energy efficiency of aid recipient countries. The result is robust with different sensitivity checks, such as using alternative measures of energy efficiency, alternative measures of energy aid, alternative estimation methods, and dropping outliers.
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Copyright 2020 Springer-Verlag
Access Condition Notes: Accepted manuscript available after 1 April 2021.