Future of the Clean Development Mechanism in tackling climate change
AbstractUsing a theoretical framework, we explain the impact of the Clean Development Mechanism (CDM) on emissions in Annex I and non-Annex I countries. We show that on one hand, emissions in the non-Annex I country decline because of abatement sponsored by the Annex I country under the CDM; on the other hand, emissions may increase because (i) the Annex I country increases emissions in its own country, and (ii) the non-Annex I country crowds out the bene?ts from the CDM projects by increasing its domestic emissions. For the CDM to be e¤ective in reducing global emissions, we show that partial Certi?ed Emissions Reduction credits should be given to the Annex I country that sponsors CDM projects in the non-Annex I country. We also suggest that the CDM Executive Board should not allow the CDM projects to be hosted by non-Annex I countries that are too conscious about their emission levels.
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Bibliographic InfoPaper provided by Department of Economics, University of St. Andrews in its series Discussion Paper Series, Department of Economics with number 200808.
Date of creation: 15 Aug 2008
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Other versions of this item:
- Selvaretnam, Geethanjali & Thampanishvong, Kannika, 2010. "Future of the Clean Development Mechanism in Tackling Climate Change," SIRE Discussion Papers 2010-35, Scottish Institute for Research in Economics (SIRE).
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-09-29 (All new papers)
- NEP-ENE-2008-09-29 (Energy Economics)
- NEP-ENV-2008-09-29 (Environmental Economics)
- NEP-PPM-2008-09-29 (Project, Program & Portfolio Management)
- NEP-REG-2008-09-29 (Regulation)
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.:
- Shurojit Chatterji & Sayantan Ghosal, 2009. "Technology, Unilateral Commitments and Cumulative Emissions Reduction," CESifo Economic Studies, CESifo, vol. 55(2), pages 286-305, June.
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