Donor’s Motivation towards Providing Aid for Sustainable Initiatives: An Analysis of the Global Scenario
Abstract A substantial number of studies on development aid have explored the reasons for donor’s aid allocation decisions, but very few exist for the Sustainable Production and Consumption (SP&C) sector. This fails to provide evidence to policymakers to evaluate regarding inquiries about their allocative efficiency, equal allocation & rhetoric with regard to international commitment of Sustainable Production and Consumption. This study examines donors’ motivations to provide aid for the sustainable initiatives in general and sustainable production and consumption sector in particular using 35 donor and receptor countries worldwide between the time period 1992 and 2016. By examining four rational choice models, the results reveal that donors take into consideration their own self-interests as well as they cater to the recipients’ needs for allocation of aid. The study also finds that, more aid is given to countries with good governance capabilities and thus do not prioritize fragile states.