World Bank Energy, Mining and Peterochemical Lending and CO2 Emissions 1990-2010: A Quantitative, Cross-National Analysis

• In Event: 325 - Section on Sociology of Development Paper Session. Environment and Development

Abstract

This paper examines the relationship between World Bank loans and environmental impact extending our knowledge of the adverse effects of development lending. Our cross-national analysis evaluates the impact of 1,154 loans across 134 countries and regions in the Global South. Using panel data, we calculate the effects of lending in the mining, energy and petrochemical sectors on carbon dioxide emissions from 1990 to 2010. By using a regression technique introduced by Dietz and Rosa (1994) called STIRPAT (STochastic Impact Regression of Population Affluence and Techonology) we compare the effects of population, affluence, and World Bank lending. We utilize a two way fixed-effects regression model to asses the effects of these factors over time and conclude that World Bank loans are correlated with higher rates of CO2 emissions with roughly one-fifth of the impact population has on carbon dioxide emissions.

Authors

• Kent E. Henderson, State University of New York-Stony Brook

• John M. Shandra, State University of New York-Stony Brook