Environmental Aid: Driven by Recipient Need or Donor Interests?*

Objective This study investigates the trends in the distribution of environmental aid from the U.S. Agency for International Development (USAID), U.S. foundations, and a multilateral donor, the Global Environmental Fund (GEF), to determine whether aid is driven by donor interests or recipient need. Methods Data from USAID, the Foundation Center, GEF, and other secondary sources are analyzed using logistic and OLS regressions. Results Traditional donor interests (politics, economics, and security) and donors' environmental interests (those favoring “global” environmental concerns over local ones) explain which nations receive environmental aid and which do not and how much nations receive. In general, the allocation of environmental aid differs from that of official development assistance. The United States does not demonstrate a middle‐income bias; multilateral aid is not more “humanitarian” than bilateral aid. Foundations' allocation patterns favor traditional donors interests. Conclusions Environmental aid does not target the nations that are most in need of abating local pollution. Instead, environmental aid donors favor nations with whom they have had prior relations (economic and security), nations that are democratic, and nations with unexploited natural resources. In short, donor interests outweigh recipient need.