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Potential and bottlenecks of the carbon market: The case of a developing country, Nepal


  • Dhakal, Shobhakar
  • Raut, Anil K.


The majority of clean development mechanism (CDM) projects are confined to a few countries. For many developing nations, entry into the carbon market, either through CDM or others, has been difficult. Thus, rationalizing CDM projects and the carbon market as a tool for sustainable development is often questioned. Many developing countries, such as Nepal, lack a quantification of CO2 reduction potential and an assessment of bottlenecks necessary for the carbon market. In this context, this paper assesses the potential emission reductions from major sectors of Nepal and the accompanying bottlenecks of the carbon market. The analyses provide indications of the type and scale of the carbon mitigation opportunities in key sectors such as waste management, biogas utilization, promotion of electric vehicles, rice cultivation, bio-energy utilization, brick making, hydropower development and a few others. These might be helpful to decision-makers in Nepal as well as to the process of re-orienting CDM and other carbon markets to better understand the bottlenecks of developing countries.

Suggested Citation

  • Dhakal, Shobhakar & Raut, Anil K., 2010. "Potential and bottlenecks of the carbon market: The case of a developing country, Nepal," Energy Policy, Elsevier, vol. 38(7), pages 3781-3789, July.
  • Handle: RePEc:eee:enepol:v:38:y:2010:i:7:p:3781-3789

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    References listed on IDEAS

    1. Pokharel, Shaligram, 2007. "Kyoto protocol and Nepal's energy sector," Energy Policy, Elsevier, vol. 35(4), pages 2514-2525, April.
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    Cited by:

    1. Acharya, Bikram & Marhold, Klaus, 2019. "Determinants of household energy use and fuel switching behavior in Nepal," Energy, Elsevier, vol. 169(C), pages 1132-1138.
    2. Gurung, Anup & Oh, Sang Eun, 2013. "Conversion of traditional biomass into modern bioenergy systems: A review in context to improve the energy situation in Nepal," Renewable Energy, Elsevier, vol. 50(C), pages 206-213.
    3. Sovacool, Benjamin K. & Dhakal, Saroj & Gippner, Olivia & Bambawale, Malavika Jain, 2011. "Halting hydro: A review of the socio-technical barriers to hydroelectric power plants in Nepal," Energy, Elsevier, vol. 36(5), pages 3468-3476.
    4. Mori-Clement, Yadira & Bednar-Friedl, Birgit, 2019. "Do Clean Development Mechanism Projects Generate Local Employment? Testing for Sectoral Effects across Brazilian Municipalities," Ecological Economics, Elsevier, vol. 157(C), pages 47-60.
    5. Yadira Mori Clement & Birgit Bednar-Friedl, 2017. "Do Clean Development Mechanism projects generate local employment? Testing for sectoral effects across Brazilian municipalities," Graz Economics Papers 2017-05, University of Graz, Department of Economics.
    6. Belay Manjur Gebru & Sonam Wangyel Wang & Sea Jin Kim & Woo-Kyun Lee, 2019. "Socio-Ecological Niche and Factors Affecting Agroforestry Practice Adoption in Different Agroecologies of Southern Tigray, Ethiopia," Sustainability, MDPI, Open Access Journal, vol. 11(13), pages 1-19, July.


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