Publication

The paper develops a general methodology for estimating the aggregate impact of development finance institutions (DFIs) on investment, especially during financial crises and in post-conflict periods, and the ability of DFIs to improve energy efficiency. It is found that DFIs increased total investment and improved energy efficiency in recipient countries. While, traditional impact assessments focus on micro-level impacts, this paper argues that DFIs can play an important role in tackling global challenges. This requires an expansion of the focus of DFIs from addressing capital market failures to addressing market and coordination failures associated with technology adoption and the environment.