Assessing the Effectiveness of Climate Finance: Composite Indicators and Quantile Regression

Abstract

In this chapter we briefly explain methods proposed to assess the effectiveness of the climate funds to reduce the greenhouse gas emissions. Greenhouse gas emissions are constituted by Carbon Dioxide (CO2), Methane (CH4), Nitrous oxide (N2O) and Chlorofluorocarbons (CFCs), hydro chlorofluoro-carbons (HCFCs), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6), together called F-gases. Considering the multidimensional concept and the complexity of the topic we first explain the composite indicator as useful tools to summarize in one indicator the individual components of the greenhouse gas emissions and to compare performances of the countries. Second, we describe the quantile regression, focusing on the theory and possible applications in research fields of interest. Quantile regression, in fact, is one of the tools used to assess the effects of economic policies on some of the target variables.