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Explaining the differential distribution of Clean Development Mechanism projects across host countries

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  • Winkelman, Andrew G.
  • Moore, Michael R.

Abstract

The Clean Development Mechanism (CDM) of the Kyoto Protocol represents an opportunity to involve all developing countries in the effort to reduce greenhouse gas emissions while also promoting sustainable development. To date, however, the majority of CDM projects have gone to emerging markets such as China, India, Brazil, and Mexico, while very few least developed countries have hosted projects. This paper investigates the differential distribution of CDM activities across countries. We develop a conceptual model for project profitability, which helps to identify potential country-level determinants of CDM activity. These potential determinants are employed as explanatory variables in regression analysis to explain the actual distribution of projects. Human capital and greenhouse gas emission levels influenced which countries have hosted projects and the amount of certified emission reductions (CER) created. Countries that offered growing markets for CDM co-products, such as electricity, were more likely to be CDM hosts, while economies with higher carbon intensity levels had greater CER production. These findings work against the least developed countries and help to explain their lack of CDM activity.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:enepol:v:39:y:2011:i:3:p:1132-1143
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Koo, Bonsang, 2017. "Examining the impacts of Feed-in-Tariff and the Clean Development Mechanism on Korea's renewable energy projects through comparative investment analysis," Energy Policy, Elsevier, vol. 104(C), pages 144-154.
    2. Trotter, Ian Michael & da Cunha, Dênis Antônio & Féres, José Gustavo, 2015. "The relationships between CDM project characteristics and CER market prices," Ecological Economics, Elsevier, vol. 119(C), pages 158-167.
    3. Röttgers, Dirk & Grote, Ulrike, 2014. "Africa and the Clean Development Mechanism: What Determines Project Investments?," World Development, Elsevier, vol. 62(C), pages 201-212.
    4. 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.
    5. Heleen de Coninck & Daniel Puig, 2015. "Assessing climate change mitigation technology interventions by international institutions," Climatic Change, Springer, vol. 131(3), pages 417-433, August.
    6. Pauline Lacour & Jean-Christophe Simon, 2012. "Quelle intégration des pays en développement dans le régime climatique ? Le Mécanisme pour un Développement Propre en Asie," Post-Print halshs-00763231, HAL.
    7. Koo, Bonsang, 2017. "Preparing hydropower projects for the post-Paris regime: An econometric analysis of the main drivers for registration in the Clean Development Mechanism," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 868-877.
    8. repec:taf:tcpoxx:v:16:y:2016:i:6:p:752-767 is not listed on IDEAS
    9. Chirambo, Dumisani, 2016. "Addressing the renewable energy financing gap in Africa to promote universal energy access: Integrated renewable energy financing in Malawi," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 793-803.
    10. Sandrine Mathy & Odile Blanchard, 2016. "Proposal for a poverty-adaptation-mitigation window within the Green Climate Fund," Climate Policy, Taylor & Francis Journals, vol. 16(6), pages 752-767, August.
    11. Watts, David & Albornoz, Constanza & Watson, Andrea, 2015. "Clean Development Mechanism (CDM) after the first commitment period: Assessment of the world׳s portfolio and the role of Latin America," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 1176-1189.
    12. Kim, Jung Eun & Popp, David & Prag, Andrew, 2013. "The Clean Development Mechanism and neglected environmental technologies," Energy Policy, Elsevier, vol. 55(C), pages 165-179.
    13. Igor Shishlov & Valentin Bellassen, 2012. "10 lessons from 10 years of the CDM," Working Papers hal-01151437, HAL.
    14. Xie, Huiming & Shen, Manhong & Wang, Rui, 2014. "Determinants of clean development mechanism activity: Evidence from China," Energy Policy, Elsevier, vol. 67(C), pages 797-806.

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