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Additionality and Sustainable Development Issues Regarding CDM Projects in Energy Efficiency Sector

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  • Michaelowa, Axel
  • Umamaheswaran, K.

Abstract

The objective of this discussion paper is to assess additionality and sustainable development issues of energy efficiency CDM projects with an emphasis on the situation in India. In the second half of 2005, almost 100 energy efficiency projects has been submitted for validation and 54 of those projects were analysed with regards to additionality and sustainable development benefits based on Activity Scale (Large Scale & Small Scale), Sector (WHR, DSM, Cement Blending, Service), project start date. 60% are large scale projects and 90% had started before 2005. The results show that additionality and sustainable development are often assessed in a cursory manner and only in few projects additionality was well established. Besides resource conservation, energy efficiency projects do not create much qualitative sustainable development benefits on the whole. Technology transfer occurred rarely and indigenous technology development happened only in 2 projects.

Suggested Citation

  • Michaelowa, Axel & Umamaheswaran, K., 2006. "Additionality and Sustainable Development Issues Regarding CDM Projects in Energy Efficiency Sector," HWWA Discussion Papers 346, Hamburg Institute of International Economics (HWWA).
    • Handle: RePEc:zbw:hwwadp:346
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    References listed on IDEAS

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    1. Langrock, Thomas & Michaelowa, Axel & Greiner, Sandra, 2000. "Defining Investment Additionality for CDM Projects - Practical Approaches," Discussion Paper Series 26282, Hamburg Institute of International Economics.
    2. Dutschke, Michael & Michaelowa, Axel, 2003. "Development Aid and the CDM - How to interpret "Financial Additionality"," HWWA Discussion Papers 228, Hamburg Institute of International Economics (HWWA).
    3. Greiner, Sandra & Michaelowa, Axel, 2003. "Defining Investment Additionality for CDM projects--practical approaches," Energy Policy, Elsevier, vol. 31(10), pages 1007-1015, August.
    4. Dutschke, Michael & Michaelowa, Axel, 2003. "Development Aid and the CDM - How to Interpret "Financial Additionality"," Discussion Paper Series 26243, Hamburg Institute of International Economics.
    5. Taishi Sugiyama & Axel Michaelowa, 2001. "Reconciling the design of CDM with inborn paradox of additionality concept," Climate Policy, Taylor & Francis Journals, vol. 1(1), pages 75-83, March.
    6. Langrock, Thomas & Michaelowa, Axel & Greiner, Sandra, 2000. "Defining investment additionality for CDM projects: Practical approaches," HWWA Discussion Papers 106, Hamburg Institute of International Economics (HWWA).
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    Cited by:

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    2. Marcel Brinkman & Samuel Fankhauser & Ben Irons & Stephan Weyers, 2009. "The carbon market in 2020: volumes, prices and gains from trade," GRI Working Papers 11, Grantham Research Institute on Climate Change and the Environment.

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    More about this item

    Keywords

    Energy Efficiency Projects; Additionality; Sustainability Development; Large Scale; Small Scale Projects;
    All these keywords.

    JEL classification:

    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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