Working Paper
The Effectiveness of Foreign Aid for Sustainable Energy

Foreign aid and technology transfer are an essential means, especially for the least developed countries, towards meeting the Millennium Development Goals as well as facilitating adaptation to, and mitigation of, climate change. The deployment of technologies harvesting renewable energy flows and efficiency improvements is the key for improving access to modern energy services and mitigating climate change. However, support of sustainable energy, until recent, has been the step-child of foreign aid and its efficacy has been questioned. This paper reviews what the literature has to offer as to the effectiveness of foreign aid for sustainable energy and climate mitigation.