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The Kyoto Protocol, Emissions Trading and the CDM: An Analysis from Developing Countries Perspective

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  • Jyoti P. Painuly

Abstract

In this paper the Kyoto Protocol is analyzed from the perspective of developing countries. The literature on the Protocol's impact indicates that Annex B countries will benefit from an emissions trading regime and the benefit is highest when non-Annex B countries are also included in the trading system. The paper addresses the issue of allocation of gains to developing countries from the Clean Development Mechanism, when the CDM simulates emissions trading. It was found that gains to non-Annex B from participation in GHG mitigation might vary from $6 billion to $29 billion, about 7% and 20% respectively of the global gains in an emissions trading system. However, several institutional issues related to CDM design and implementation will have to be resolved before developing countries can optimize their gains. Indirect impacts of the Kyoto Protocol through trade, although expected to be significant, have not been included. To optimize their gains, non-Annex B countries need to actively participate in the design and implementation aspects of the CDM.

Suggested Citation

  • Jyoti P. Painuly, 2001. "The Kyoto Protocol, Emissions Trading and the CDM: An Analysis from Developing Countries Perspective," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 147-169.
    • Handle: RePEc:aen:journl:2001v22-03-a06
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    Cited by:

    1. Jyoti Painuly, 2003. "Baselines for Clean Development Mechanism Projects: The Marrakesh Accords and Beyond," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 3(4), pages 323-348, December.
    2. Donald Larson & Gunnar Breustedt, 2009. "Will Markets Direct Investments Under the Kyoto Protocol? Lessons from the Activities Implemented Jointly Pilots," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 43(3), pages 433-456, July.
    3. Nimisha Pandey & Heleen de Coninck & Ambuj D Sagar, 2022. "Beyond technology transfer: Innovation cooperation to advance sustainable development in developing countries," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 11(2), March.
    4. Bryan, Elizabeth & Akpalu, Wisdom & Yesuf, Mahmud & Ringler, Claudia, 2008. "Global carbon markets: Are there opportunities for Sub-Saharan Africa?," IFPRI discussion papers 832, International Food Policy Research Institute (IFPRI).
    5. Duic, N. & Alves, L. M. & Chen, F. & da Graça Carvalho, M., 2003. "Potential of Kyoto Protocol Clean Development Mechanism in transfer of clean energy technologies to Small Island Developing States: case study of Cape Verde," Renewable and Sustainable Energy Reviews, Elsevier, vol. 7(1), pages 83-98, February.
    6. Kim Olsen & Jyoti Painuly, 2002. "The Clean Development Mechanism: A Bane or a Boon for Developing Countries?," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 2(3), pages 237-260, September.

    More about this item

    JEL classification:

    • F0 - International Economics - - General

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