Output-Based Aid and Carbon Finance
Out-based aid (OBA) involves the use of explicit, performance-based subsidies to deliver public services such as water and sanitation. It is used to fund the gap between people's willingness or ability to pay for a service whose delivery is de...
| Main Authors: | , |
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| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2006/12/7362530/output-based-aid-carbon-finance http://hdl.handle.net/10986/11035 |
| Summary: | Out-based aid (OBA) involves the use of
explicit, performance-based subsidies to deliver public
services such as water and sanitation. It is used to fund
the gap between people's willingness or ability to pay
for a service whose delivery is deemed worth subsidizing and
the cost of providing that service. It can also be used to
finance public goods or to mitigate externalities such as
environmental costs. One such application is carbon finance,
an output-based approach to mitigating climate change. Under
the Kyoto Protocol's project-based mechanisms-the Clean
Development Mechanism and Joint Implementation-projects in
developing and transition economies that reduce greenhouse
gas emissions can receive "carbon credits." Carbon
revenues can help project sponsors close the financing gap
between climate-friendly projects and conventional projects,
and can help industrial countries reduce their cost of
compliance with the Kyoto Protocol. |
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