FAERE 2026

Economic development has historically been accompanied by higher CO₂ emissions: expanding energy systems, transport networks, and cities has delivered large welfare gains—often at substantial carbon cost. This paper asks whether development is necessarily carbon-intensive, or whether it can be financed and built in ways that raise living standards without proportionally increasing emissions. I study how the composition of development finance—climate-oriented vs. non-climate portfolios—relates to subnational CO₂ emissions trajectories, using a global, place-based empirical design that goes beyond country aggregates and donor self-labels.

Presented in the session Environment and Trade for Developing Countries (Salle 102). Slides available upon requests.