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Renewable energy investment and the clean development mechanism

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  • Zavodov, Kirill

Abstract

This paper uses transaction and index data to empirically examine price formation in, and equilibrium characteristics of, the primary CDM market. Results point to the preemptive (and, possibly, speculative) behaviour among intermediaries (carbon firms), and inefficiencies in information transmission between secondary and primary markets. Since the primary carbon market is unstable and is prone to rational and irrational oscillations, the CDM, in its current form, is not a reliable policy tool for long-term renewable energy sector development plans, whenever fiscal regulatory instruments are available.

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  • Zavodov, Kirill, 2012. "Renewable energy investment and the clean development mechanism," Energy Policy, Elsevier, vol. 40(C), pages 81-89.
    • Handle: RePEc:eee:enepol:v:40:y:2012:i:c:p:81-89
    DOI: 10.1016/j.enpol.2010.06.065
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    2. Anna Carolina Martins & Marcelo de Carvalho Pereira & Roberto Pasqualino, 2023. "Renewable Electricity Transition: A Case for Evaluating Infrastructure Investments through Real Options Analysis in Brazil," Sustainability, MDPI, vol. 15(13), pages 1-24, July.
    3. 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.
    4. Sanya Carley & Elizabeth Baldwin & Lauren M. MacLean & Jennifer N. Brass, 2017. "Global Expansion of Renewable Energy Generation: An Analysis of Policy Instruments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(2), pages 397-440, October.
    5. Sun, Xiaolei & Li, Jianping & Wang, Yongfeng & Clark, Woodrow W., 2014. "China's Sovereign Wealth Fund Investments in overseas energy: The energy security perspective," Energy Policy, Elsevier, vol. 65(C), pages 654-661.
    6. Ming, Zeng & Ximei, Liu & Yulong, Li & Lilin, Peng, 2014. "Review of renewable energy investment and financing in China: Status, mode, issues and countermeasures," Renewable and Sustainable Energy Reviews, Elsevier, vol. 31(C), pages 23-37.
    7. Kim, Kyeongseok & Park, Hyoungbae & Kim, Hyoungkwan, 2017. "Real options analysis for renewable energy investment decisions in developing countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 918-926.
    8. Vasileios PAPADIMITRIOU & Serafeim POLYZOS & Dimitrios TSIOTAS, 2023. "Renewable Energy Project Appraisal Using The Real Options Methodology," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 85-96, June.

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