Maximizing the Impact of Climate Finance: Funding Projects or Pilot Projects? / Matthew J. Kotchen.

Format:

Book

Author/Creator:

Kotchen, Matthew J.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w23023.

NBER working paper series no. w23023

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Maximizing the Impact of Climate Finance

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2017.

Summary:

This paper contributes to the understanding of how to maximize the impact of publicly provided climate finance to leverage the private sector. Agencies seeking to promote private investment in support of climate change mitigation and adaptation may have a choice between subsidizing projects or pilot projects. Pilots are either scaled down versions of full projects or an experimental phase that generates better information about whether a full project is likely to succeed or fail. Drawing on insights about the value of experimentation for entrepreneurship and raising private capital, the theoretical model developed herein provides guidance about when subsidizing projects or pilots is more efficient.

Notes:

Print version record

January 2017.