Determinants of climate finance flows to developing countries in continental America in 2018: a cross-sectional analysis

Abstract

According to the proposed and ratified objectives by the United Nations Conference on Climate Change in 2021, and by the Convention on Biological Diversity that the global coverage of protected areas in the planet should reach 30% of the planet by 2030. As a means of contributing with the analysis and understanding of how to achieve this colossal ambition, this research aims to analyze the determinants of flows of climate finance for general protection of the environment received by 14 developing countries in continental America in 2018. Using as axis of analysis the database available in the Credit Reporting System, of the Organization for Economic Cooperation and Development (September 27, 2021), which focuses on the flows of Official Development Assistance (ODA), in the environment protection sector, as well as the World Bank Group World Development Indicators database (September 15, 2021), it is argued that climate finance flows could be attracted to this region thanks to its level of well-being, (expressed as Gross Domestic Product (GDP) per capita, and life expectancy at birth), environmental governance (proxied by the percentage of protected maritime land area), and political governance (proxied by estimates of government effectiveness, and political stability-absence of violence). Through a correlational quantitative analysis with a cross-sectional non-experimental research design with data from 2018, this research concludes that life expectancy at birth, the maritime-terrestrial protected area, and political stability-non-violence, are important propellers of climate finance flows towards these recipient countries. Environmental development policy makers can use these results as input to increase the effectiveness of their environmental programs and projects in favor of a more sustainable and promising future.