"The Green Climate Fund (GCF) is a fund within the framework of the UNFCCC founded as a mechanism to assist developing countries in adaptation and mitigation practices to counter climate change. In this paper, we analyze the flow of funds among countries and investigate, through a counterfactual analysis, their effectiveness. The results show that as result of the receipt of the funds, countries reduced their GHG emission and have been incentivized in the replacement of fossil sources with renewable sources. Finally, also a leverage effect of the funds for economic development of the recipient countries comes into the light."

Support: Digital