Carbon leakage from the clean development mechanism
AbstractThe Clean Development Mechanism (CDM) is an offset mechanism designed to reduce the overall cost of implementing a given target for greenhouse gas (GHG) emissions in industrialized Annex B countries of the Kyoto Protocol, by shifting some of the emission reductions to Non-Annex B countries. This paper analyzes how CDM projects may lead to leakage of emissions elsewhere in Non-Annex B countries, taking into account also potential (negative) leakage effects from less emission reductions in Annex B. Leakage occurs because emissions reductions under a CDM project may affect market equilibrium in regional and/or global energy and product markets, and thereby increase emissions elsewhere. We find that overall leakage typically will be positive and sizeable, thus leading to an overall increase in global GHG emissions when CDM projects are undertaken. The leakage rate is greatest when the different fossil fuel markets are more segregated.
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 Research Department of Statistics Norway in its series Discussion Papers with number 591.
Date of creation: Sep 2009
Date of revision:
Carbon leakage; Clean Development Mechanism; Kyoto protocol;
Other versions of this item:
- Knut Einar Rosendahl & Jon Strand, 2011. "Carbon Leakage from the Clean Development Mechanism," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 27-50.
- F18 - International Economics - - Trade - - - Trade and Environment
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
- 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-2009-10-10 (All new papers)
- NEP-ENE-2009-10-10 (Energy Economics)
- NEP-ENV-2009-10-10 (Environmental Economics)
- NEP-PPM-2009-10-10 (Project, Program & Portfolio Management)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Greaker, Mads & Stoknes, Per Espen & Alfsen, Knut H. & Ericson, Torgeir, 2013.
"A Kantian approach to sustainable development indicators for climate change,"
Elsevier, vol. 91(C), pages 10-18.
- Mads Greaker & Per Espen Stoknes & Knut H. Alfsen & Torgeir Ericson, 2012. "A Kantian approach to sustainable development indicators for climate change," Discussion Papers 718, Research Department of Statistics Norway.
- Bofinger, Heinrich & Strand, Jon, 2013. "Calculating the carbon footprint from different classes of air travel," Policy Research Working Paper Series 6471, The World Bank.
- Rosendahl, Knut Einar & Strand, Jon, 2012.
"Emissions trading with offset markets and free quota allocations,"
Policy Research Working Paper Series
6281, The World Bank.
- Knut Einar Rosendahl & Jon Strand, 2012. "Emissions trading with offset markets and free quota allocations," Discussion Papers 719, Research Department of Statistics Norway.
- Jones, Benjamin & Keen, Michael & Strand, Jon, 2012.
"Fiscal implications of climate change,"
Policy Research Working Paper Series
5956, The World Bank.
- Strand, Jon & Rosendahl, Knut Einar, 2012. "Global emissions effects of CDM projects with relative baselines," Resource and Energy Economics, Elsevier, vol. 34(4), pages 533-548.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (J Bruusgaard).
If references are entirely missing, you can add them using this form.