The Clean Development Mechanism under the Kyoto Protocol and the `low-hanging fruits' issue
AbstractThe Kyoto Protocol has introduced the so-called Clean Development Mechanism (CDM) under which industrialized countries are allowed to fulfill part of their obligations through the use of emission credits generated by emission reduction projects undertaken in developing countries. Developing countries have been reluctant to participate in the CDM, fearing that the CDM will use up most of their cheap abatement options (the "low-hanging fruits" problem). In this paper we show that developing countries should in general participate in the CDM, unless the credit prices are relatively low. Moreover, these countries always gain by participating in the CDM when banking of credits is allowed. Nevertheless, three effects that are likely to limit the extent of such a participation are identified. A case-study (South Africa) reveals that these effects may play a significant role.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2004081.
Date of creation: 00 Dec 2004
Date of revision:
Contact details of provider:
Postal: Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium)
Fax: +32 10474304
Web page: http://www.uclouvain.be/core
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Adam Rose & Erwin Bulte & Henk Folmer, 1999. "Long-Run Implications for Developing Countries of Joint Implementation of Greenhouse Gas Mitigation," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 14(1), pages 19-31, July.
- GERMAIN, Marc & MAGNUS, Alphonse & VAN STEENBERGHE, Vincent, 2005.
"Should developing countries participate in the Clean Development Mechanism under the Kyoto Protocol ? The low-hanging fruits and baseline issues,"
CORE Discussion Papers
2005023, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Marc, GERMAIN & Alphonse, MAGNUS & Vincent, VAN STEENBERGHE, 2005. "Should developing countries participate in the Clean Development Mechanism under the Kyoto Protocol ? The low-hanging fruits and baseline issues," Discussion Papers (ECON - DÃ©partement des Sciences Economiques) 2005022, Université catholique de Louvain, Département des Sciences Economiques.
- M. Germain & A. Magnus & V. Steenberghe, 2007. "How to design and use the clean development mechanism under the Kyoto Protocol? A developing country perspective," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 38(1), pages 13-30, September.
- Urvashi Narain & Klaas Veld, 2008. "The Clean Development Mechanism’s Low-hanging Fruit Problem: When Might it Arise, and How Might it be Solved?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 40(3), pages 445-465, July.
- Yang, Ming & Nguyen, François & De T'Serclaes, Philippine & Buchner, Barbara, 2010. "Wind farm investment risks under uncertain CDM benefit in China," Energy Policy, Elsevier, vol. 38(3), pages 1436-1447, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alain GILLIS).
If references are entirely missing, you can add them using this form.