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The potential of the CDM to deliver pro-poor benefits

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  • Tracey L. Crowe

Abstract

The potential of Clean Development Mechanism (CDM) projects to deliver pro-poor benefits at the community level is examined. Both regular CDM and premium add-on standard projects are evaluated, including the Gold Standard and Climate, Community and Biodiversity (CCB) Standard, through the use of seven poverty indicators. Some key characteristics associated with providing pro-poor benefits are also identified. Finally, the market potential of a revised or new premium add-on standard explicitly designed to deliver pro-poor benefits is assessed through the use of a survey. The results indicate that regular CDM projects are only moderately successful at delivering pro-poor benefits. Although the few projects registered that utilize the CCB Standard all performed well in delivering pro-poor benefits, those that used the Gold Standard performed only slightly better than regular CDM projects. Characteristics associated with providing pro-poor benefits include the use of add-on standards, a high level of stakeholder participation, and the development of projects by not-for-profit and government/intergovernmental organizations. The survey of carbon market participants indicated both an interest and desire for Certified Emission Reduction (CER) credits with pro-poor benefits attached and shows that the market potential for such a standard to be quite good. Policy relevance This analysis of the CDM goes beyond sustainable development to consider the potential of a project to deliver pro-poor benefits at the local community level. Specific characteristics associated with projects are identified that appear to deliver pro-poor benefits that may benefit future project design. Through this analysis and identifying these characteristics, actions may be taken to incorporate those into CDM project requirements or guidelines to advance the mechanism as a means to contribute to poverty alleviation.

Suggested Citation

  • Tracey L. Crowe, 2013. "The potential of the CDM to deliver pro-poor benefits," Climate Policy, Taylor & Francis Journals, vol. 13(1), pages 58-79, January.
    • Handle: RePEc:taf:tcpoxx:v:13:y:2013:i:1:p:58-79
    DOI: 10.1080/14693062.2012.709080
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    References listed on IDEAS

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    1. Karan Capoor & Philippe Ambrosi, "undated". "State and Trends of the Carbon Market 2009," World Bank Publications - Reports 13403, The World Bank Group.
    2. repec:wbk:wboper:13399 is not listed on IDEAS
    3. repec:wbk:wboper:13402 is not listed on IDEAS
    4. Nicholas Linacre & Alexandre Kossoy & Philippe Ambrosi, "undated". "State and Trends of the Carbon Market 2011," World Bank Publications - Reports 13400, The World Bank Group.
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    Cited by:

    1. Du, Yimeng & Takeuchi, Kenji, 2019. "Can climate mitigation help the poor? Measuring impacts of the CDM in rural China," Journal of Environmental Economics and Management, Elsevier, vol. 95(C), pages 178-197.
    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. David Grover & Swaroop Rao, 2020. "Inequality, unemployment, and poverty impacts of mitigation investment: evidence from the CDM in Brazil and implications for a post-2020 mechanism," Climate Policy, Taylor & Francis Journals, vol. 20(5), pages 609-625, May.
    4. Timothy Cadman & Lauren Eastwood & Federico Lopez-Casero Michaelis & Tek N. Maraseni & Jamie Pittock & Tapan Sarker, 2015. "The Political Economy of Sustainable Development," Books, Edward Elgar Publishing, number 15773.
    5. Drupp, Moritz A. & Baumgärtner, Stefan & Meyer, Moritz & Quaas, Martin F. & von Wehrden, Henrik, 2020. "Between Ostrom and Nordhaus: The research landscape of sustainability economics," Ecological Economics, Elsevier, vol. 172(C).
    6. Matthew A. Cole & David J. Maddison & Liyun Zhang, 2020. "Testing the emission reduction claims of CDM projects using the Benford’s Law," Climatic Change, Springer, vol. 160(3), pages 407-426, June.
    7. 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.
    8. Bortoletto, Wagner Wilson & Pacagnella Junior, Antonio Carlos & Cabello, Otavio Gomes, 2023. "Exploring the scientific literature on clean development mechanisms: A bibliometric analysis," Energy Policy, Elsevier, vol. 183(C).
    9. 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.

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