Raising climate finance to support developing country action: some economic considerations

摘要: This article explores the principles that should guide efforts to raise finance for climate action in developing countries. The main conclusions are that, first, there is an important role private finance, which would be facilitated by having pervasive and broadly uniform emissions pricing around world. Second, public warranted a range of market – policy failures associated with change its mitigation. Third, raising tax revenues may preferable borrowing as means although economics not clear-cut. Public theory advocates taxing ‘bads’, number have escaped base so far. However, it discourages hypothecation specific revenue streams particular uses. Fourth, how much could or raised many proposals countries often uncertain. So multiple schemes interact. Several depress carbon prices. Earmarking assumed justified despite arguments contrary. Fifth, two sets do particularly well when judged against this analysis: (i) expanding scale scope Clean Development Mechanism (CDM) (ii) use international financial institutions’ balance sheets.