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Examining the regional pattern of renewable energy CDM power projects in India

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  • Sawhney, Aparna
  • Rahul, M.

Abstract

India is one of the leading host countries of Clean Development Mechanism (CDM) projects, but these projects have been concentrated within ten states of the country. While the skewed distribution of CDM projects across countries is well recognized, little attention has been given to the skewed distribution of CDM projects within a country like India. We examine the different factors that account for the regional distribution of renewable energy based CDM power projects in India using state-specific and renewable form-specific explanatory variables including natural potential, economic conditions, and government policies. We find that state implementation of fiscal incentive measures and CDM benefit-sharing were the most significant factors in locating these projects within the states, apart from natural renewable potential. In the top ten states, controlling for the government incentives and subsidies, the pre-installed renewable power capacity was also a significant factor. State financial incentives and CDM benefit clause were also found to be the most significant factor in the generation of certified emission reductions from CDM projects. Unfortunately states with relatively higher natural potential lost out on the additional product gains through CERs, and an important aspect of the CDM approach seems to have been missed in India — that of promoting development in other regions of the country which had natural potential.

Suggested Citation

  • Sawhney, Aparna & Rahul, M., 2014. "Examining the regional pattern of renewable energy CDM power projects in India," Energy Economics, Elsevier, vol. 42(C), pages 240-247.
  • Handle: RePEc:eee:eneeco:v:42:y:2014:i:c:p:240-247
    DOI: 10.1016/j.eneco.2014.01.007
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    References listed on IDEAS

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    1. Huang, Yongfu & Barker, Terry, 2012. "The Clean Development Mechanism and low carbon development: A panel data analysis," Energy Economics, Elsevier, vol. 34(4), pages 1033-1040.
    2. Winkelman, Andrew G. & Moore, Michael R., 2011. "Explaining the differential distribution of Clean Development Mechanism projects across host countries," Energy Policy, Elsevier, vol. 39(3), pages 1132-1143, March.
    3. Doranova, Asel & Costa, Ionara & Duysters, Geert, 2010. "Knowledge base determinants of technology sourcing in clean development mechanism projects," Energy Policy, Elsevier, vol. 38(10), pages 5550-5559, October.
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    5. Schmid, Gisèle, 2012. "The development of renewable energy power in India: Which policies have been effective?," Energy Policy, Elsevier, vol. 45(C), pages 317-326.
    6. Jung, Martina, 2006. "Host country attractiveness for CDM non-sink projects," Energy Policy, Elsevier, vol. 34(15), pages 2173-2184, October.
    7. Phillips, Jon & Newell, Peter, 2013. "The governance of clean energy in India: The clean development mechanism (CDM) and domestic energy politics," Energy Policy, Elsevier, vol. 59(C), pages 654-662.
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    Cited by:

    1. Jin, S.W. & Li, Y.P. & Huang, G.H. & Nie, S., 2018. "Analyzing the performance of clean development mechanism for electric power systems under uncertain environment," Renewable Energy, Elsevier, vol. 123(C), pages 382-397.
    2. Zhang, Yue-Jun & Sun, Ya-Fang & Huang, Junling, 2018. "Energy efficiency, carbon emission performance, and technology gaps: Evidence from CDM project investment," Energy Policy, Elsevier, vol. 115(C), pages 119-130.

    More about this item

    Keywords

    India; CDM; CERs; Wind; Biomass; Hydro;

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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