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Can climate mitigation help the poor? Measuring impacts of the CDM in rural China

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  • Yimeng Du

    (Graduate School of Economics, Kobe University)

  • Kenji Takeuchi

    (Graduate School of Economics, Kobe University)

Abstract

This study aims to examine whether investment in climate change mitigation plays a role in poverty alleviation. We investigate impacts of the renewable energy-based clean development mechanism (RE-CDM) on rural communities in China. The impacts of RE-CDM projects are estimated by combining propensity score matching with the difference-in-differences approach. We found that the promotion of biomass-based CDM projects significantly contribute to income improvement, employment generation, and industrial transformation in rural communities in China. On the other hand, our estimation results reveal that large-scale wind and solar energy-based CDM projects have the potential to increase the labor force in the primary industry in rural areas.

Suggested Citation

  • Yimeng Du & Kenji Takeuchi, 2018. "Can climate mitigation help the poor? Measuring impacts of the CDM in rural China," Discussion Papers 1808, Graduate School of Economics, Kobe University.
    • Handle: RePEc:koe:wpaper:1808
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    Cited by:

    1. Jingbo Cui & Zhenxuan Wang & Haishan Yu, 2022. "Can International Climate Cooperation Induce Knowledge Spillover to Developing Countries? Evidence from CDM," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(4), pages 923-951, August.
    2. Yue‐Jun Zhang & Jing‐Yue Liu & Richard T. Woodward, 2023. "Has Chinese Certified Emission Reduction trading reduced rural poverty in China?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(3), pages 438-458, July.
    3. Ba, Feng & Liu, Jinlong & Zhu, Ting & Liu, Yonggong & Zhao, Jiacheng, 2020. "CDM forest carbon sequestration projects in western China: An analysis using actor-centered power theory," Forest Policy and Economics, Elsevier, vol. 115(C).
    4. He, Wenjian & Cheng, Yu & Lin, Ying & Zhang, Hongxiao, 2022. "Microeconomic effects of designating National Forest Cities: Evidence from China's publicly traded manufacturing companies," Forest Policy and Economics, Elsevier, vol. 136(C).
    5. Hu, Yuan & Kuhn, Lena & Zheng, Wenxue, 2021. "Promote or Inhibit？the Effects of Forest Carbon Sinks Projects on Agricultural Development: Evidence from Sichuan, China," 2021 Conference, August 17-31, 2021, Virtual 315381, International Association of Agricultural Economists.
    6. 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).
    7. Zhuo, Chengfeng & Xie, Yuping & Mao, Yanhua & Chen, Pengqin & Li, Yiqiao, 2022. "Can cross-regional environmental protection promote urban green development: Zero-sum game or win-win choice?," Energy Economics, Elsevier, vol. 106(C).
    8. Yu, Fan & Xiao, De & Chang, Meng-Shiuh, 2021. "The impact of carbon emission trading schemes on urban-rural income inequality in China: A multi-period difference-in-differences method," Energy Policy, Elsevier, vol. 159(C).
    9. Wang, Chaofan & Wang, Yilan & Zhao, Yujia & Shuai, Jing & Shuai, Chuanmin & Cheng, Xin, 2023. "Cognition process and influencing factors of rural residents' adoption willingness for solar PV poverty alleviation projects: Evidence from a mixed methodology in rural China," Energy, Elsevier, vol. 271(C).
    10. Liu, Fengqi & Kang, Yuxin & Guo, Kun, 2022. "Is electricity consumption of Chinese counties decoupled from carbon emissions? A study based on Tapio decoupling index," Energy, Elsevier, vol. 251(C).
    11. 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.
    12. Ottonelli, Janaina & Lazaro, Lira Luz Benites & Andrade, José Célio Silveira & Abram, Simone, 2023. "Do solar photovoltaic clean development mechanism projects contribute to sustainable development in Latin America? Prospects for the Paris Agreement," Energy Policy, Elsevier, vol. 174(C).
    13. Ali, Syed Ahtsham & Alharthi, Majed & Hussain, Hafezali Iqbal & Rasul, Farhat & Hanif, Imran & Haider, Jahanzaib & Ullah, Saad & ur Rahman, Saeed & Abbas, Qaiser, 2021. "A clean technological innovation and eco-efficiency enhancement: A multi-index assessment of sustainable economic and environmental management," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    14. Xiao, De & Yu, Fan & Guo, Chenhao, 2023. "The impact of China's pilot carbon ETS on the labor income share: Based on an empirical method of combining PSM with staggered DID," Energy Economics, Elsevier, vol. 124(C).
    15. Gonçalves, S. & Rodrigues, T.P. & Chagas, A.L.S., 2020. "The impact of wind power on the Brazilian labor market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 128(C).
    16. Mori-Clement, Yadira & Bednar-Friedl, Birgit, 2019. "Do Clean Development Mechanism Projects Generate Local Employment? Testing for Sectoral Effects across Brazilian Municipalities," Ecological Economics, Elsevier, vol. 157(C), pages 47-60.

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    More about this item

    Keywords

    CDM; renewable energy; poverty alleviation; rural development; propensity score matching; difference-in-differences;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • 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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