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Eco-efficiency approach for global warming in the context of Kyoto Mechanism

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  • Cha, Kyounghoon
  • Lim, Songtak
  • Hur, Tak

Abstract

This study discusses an approach to measuring and improving the economic and ecological efficiency of Kyoto Mechanism projects. The approach consists of Global Warming Eco-Efficiency (GWEE), Clean Development Mechanism (CDM) & Joint Implementation (JI) Environmental-Efficiency (EE) and CDM & JI Economic-Productivity (EP). The GWEE indicator is based on the ratio of the value added of a system to its global warming influence in order to measure the eco-efficiency of a product in terms of the global warming issue. In addition, CDM & JI EE and CDM & JI EP are proposed to measure the environmental and economic performances of CDM and JI projects, respectively. While EE is defined as the ratio of the Certified Emission Reductions (CER) obtained from a CDM project or Emission Reduction Unit (ERU) from a JI project to total global warming influence relevant to the CDM or JI implemented, EP is defined as the ratio of the total of CER profit (and ERU profit) and the sales revenue to the costs of the CDM (and JI) implemented. Then, the feasibility of these indicators is examined through a case study for the power generations in the field of alternative energy.

Suggested Citation

  • Cha, Kyounghoon & Lim, Songtak & Hur, Tak, 2008. "Eco-efficiency approach for global warming in the context of Kyoto Mechanism," Ecological Economics, Elsevier, vol. 67(2), pages 274-280, September.
    • Handle: RePEc:eee:ecolec:v:67:y:2008:i:2:p:274-280
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    References listed on IDEAS

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    1. Hondo, Hiroki, 2005. "Life cycle GHG emission analysis of power generation systems: Japanese case," Energy, Elsevier, vol. 30(11), pages 2042-2056.
    2. Riina‐Riitta Helminen, 2000. "Developing tangible measures for eco‐efficiency: the case of the Finnish and Swedish pulp and paper industry," Business Strategy and the Environment, Wiley Blackwell, vol. 9(3), pages 196-210, May.
    3. Woerdman, Edwin, 2000. "Implementing the Kyoto protocol: why JI and CDM show more promise than international emissions trading," Energy Policy, Elsevier, vol. 28(1), pages 29-38, January.
    4. Timo Kuosmanen & Mika Kortelainen, 2005. "Measuring Eco‐efficiency of Production with Data Envelopment Analysis," Journal of Industrial Ecology, Yale University, vol. 9(4), pages 59-72, October.
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