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The Clean Development Mechanism and low carbon development: A panel data analysis

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  • Huang, Yongfu
  • Barker, Terry

Abstract

The Clean Development Mechanism (CDM) of Kyoto Protocol, designed for the industrialized countries to earn emission credits by investing in greenhouse gas (GHG) emission reduction projects in developing countries, shall contribute to emission reductions and sustainable development in the host countries. However, whether the CDM is achieving its dual goals has been questionable. This research empirically investigates the long-run impacts of CDM projects on CO2 emission reductions for 80 eligible CDM host countries over 1993–2009. By allowing for considerable heterogeneity across countries, this research provides evidence in support of a decline in CO2 emissions associated with CDM projects. It serves to encourage developing countries to effectively develop CDM projects towards low carbon development.

Suggested Citation

  • Huang, Yongfu & Barker, Terry, 2012. "The Clean Development Mechanism and low carbon development: A panel data analysis," Energy Economics, Elsevier, vol. 34(4), pages 1033-1040.
    • Handle: RePEc:eee:eneeco:v:34:y:2012:i:4:p:1033-1040
    DOI: 10.1016/j.eneco.2011.08.010
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    Cited by:

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    2. Trotter, Ian Michael & da Cunha, Dênis Antônio & Féres, José Gustavo, 2015. "The relationships between CDM project characteristics and CER market prices," Ecological Economics, Elsevier, vol. 119(C), pages 158-167.
    3. Marcel Probst & Caspar Sauter, 2015. "CO2 Emissions and Greenhouse Gas Policy Stringency - An Empirical Assessment," IRENE Working Papers 15-03, IRENE Institute of Economic Research.
    4. Jaraitė, Jūratė & Kurtyka, Oliwia & Ollivier, Hélène, 2022. "Take a ride on the (not so) green side: How do CDM projects affect Indian manufacturing firms’ environmental performance?," Journal of Environmental Economics and Management, Elsevier, vol. 114(C).
    5. Dumisani Chirambo, 2014. "The Climate Finance and Energy Investment Dilemma in Africa," Journal of Developing Societies, , vol. 30(4), pages 415-440, December.
    6. Jingjing He & Yongfu Huang & Finn Tarp, 2014. "Is the Clean Development Mechanism effective for emission reductions?," Greenhouse Gases: Science and Technology, Blackwell Publishing, vol. 4(6), pages 750-760, December.
    7. Kim, Jeayoon & Park, Kwangwoo, 2018. "Effect of the Clean Development Mechanism on the deployment of renewable energy: Less developed vs. well-developed financial markets," Energy Economics, Elsevier, vol. 75(C), pages 1-13.
    8. Carlos Andrés Vergara Tamayo & Diana Carolina Ortiz Motta, 2016. "Contribución al desarrollo sostenible local de los proyectos MDL en el sector de generación eléctrica por biomasa: caso INCAUCA S.A," Revista Facultad de Ciencias Económicas, Universidad Militar Nueva Granada, vol. 24(2), pages 161-182, October.
    9. Lim, Xin-Le & Lam, Wei-Haur, 2014. "Review on Clean Development Mechanism (CDM) implementation in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 276-285.
    10. Pécastaing, Nicolas & Dávalos, Jorge & Inga, Andy, 2018. "The effect of Peru's CDM investments on households’ welfare: An econometric approach," Energy Policy, Elsevier, vol. 123(C), pages 198-207.
    11. Beibei Shi & Lei Wu & Rong Kang, 2021. "Clean Development, Energy Substitution, and Carbon Emissions: Evidence from Clean Development Mechanism (CDM) Project Implementation in China," Sustainability, MDPI, vol. 13(2), pages 1-18, January.
    12. Jin Guo & Hanqiao Yang, 2022. "CDMs’ effect on environmentally sensitive productivity: evidence from Chinese provinces," Letters in Spatial and Resource Sciences, Springer, vol. 15(3), pages 401-422, December.
    13. Zhang, Yue-Jun & Sun, Ya-Fang & Huang, Junling, 2018. "Energy efficiency, carbon emission performance, and technology gaps: Evidence from CDM project investment," Energy Policy, Elsevier, vol. 115(C), pages 119-130.
    14. Sawhney, Aparna & Rahul, M., 2014. "Examining the regional pattern of renewable energy CDM power projects in India," Energy Economics, Elsevier, vol. 42(C), pages 240-247.
    15. George A. Gonzalez, 2016. "Transforming Energy: Solving Climate Change with Technology Policy . New York : Cambridge University Press . 360 pages. ISBN 9781107614970, $29.99 paperback. Anthony Patt , 2015 ," Review of Policy Research, Policy Studies Organization, vol. 33(1), pages 111-113, January.
    16. Lee, Zhi Hua & Sethupathi, Sumathi & Lee, Keat Teong & Bhatia, Subhash & Mohamed, Abdul Rahman, 2013. "An overview on global warming in Southeast Asia: CO2 emission status, efforts done, and barriers," Renewable and Sustainable Energy Reviews, Elsevier, vol. 28(C), pages 71-81.
    17. Mandaloufas, Melissa & Lamas, Wendell de Queiroz & Brown, Scott & Irizarry Quintero, Anamari, 2015. "Energy balance analysis of the Brazilian alcohol for flex fuel production," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 403-414.
    18. Mori-Clement, Yadira, 2019. "Impacts of CDM projects on sustainable development: Improving living standards across Brazilian municipalities?," World Development, Elsevier, vol. 113(C), pages 222-236.
    19. Qiu, Y.Q. & Zhou, P. & Sun, H.C., 2019. "Assessing the effectiveness of city-level electric vehicle policies in China," Energy Policy, Elsevier, vol. 130(C), pages 22-31.
    20. Xie, Huiming & Shen, Manhong & Wang, Rui, 2014. "Determinants of clean development mechanism activity: Evidence from China," Energy Policy, Elsevier, vol. 67(C), pages 797-806.
    21. Kim, Jeayoon & Park, Kwangwoo, 2016. "Financial development and deployment of renewable energy technologies," Energy Economics, Elsevier, vol. 59(C), pages 238-250.

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    More about this item

    Keywords

    Clean Development Mechanism; CO2 emissions; Heterogeneous dynamic panels; Developing countries; China;
    All these keywords.

    JEL classification:

    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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