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Can the Clean Development Mechanism (CDM) deliver?

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  • Subbarao, Srikanth
  • Lloyd, Bob

Abstract

The paper investigates whether the Clean Development Mechanism (CDM) under the Kyoto Protocol has played a significant role in the development of rural communities, specifically investigating uptake of small-scale renewable energy projects. The investigation involved an assessment of 500 registered small-scale CDM projects under the Kyoto Protocol in terms of their potential impact on the envisaged sustainable development goals for rural communities. Five case studies from the Indian subcontinent were also examined. The paper concludes that the CDM in its current state and design has typically failed to deliver the promised benefits with regard to development objectives in rural areas. Successful projects were found to have had good community involvement and such projects were typically managed by cooperative ventures rather than money making corporations. The paper puts forward a new framework for the assessment of such benefits in the hope that future projects can be better assessed in this regard. The key problem, however, remains on how to deal with the inherent contradiction between development and sustainability.

Suggested Citation

  • Subbarao, Srikanth & Lloyd, Bob, 2011. "Can the Clean Development Mechanism (CDM) deliver?," Energy Policy, Elsevier, vol. 39(3), pages 1600-1611, March.
  • Handle: RePEc:eee:enepol:v:39:y:2011:i:3:p:1600-1611
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    References listed on IDEAS

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    1. Fausto Cavallaro & University of Molise, 2005. "An Integrated Multi-Criteria System to Assess Sustainable Energy Options: An Application of the Promethee Method," Working Papers 2005.22, Fondazione Eni Enrico Mattei.
    2. Lloyd, Bob & Forest, Andrew S., 2010. "The transition to renewables: Can PV provide an answer to the peak oil and climate change challenges?," Energy Policy, Elsevier, vol. 38(11), pages 7378-7394, November.
    3. Lloyd, Bob & Subbarao, Srikanth, 2009. "Development challenges under the Clean Development Mechanism (CDM)--Can renewable energy initiatives be put in place before peak oil?," Energy Policy, Elsevier, vol. 37(1), pages 237-245, January.
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    5. Matthew Mendis & Keith Openshaw, 2004. "THE Clean Development Mechanism: Making it Operational," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 6(1), pages 183-211, March.
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    9. Olsen, Karen Holm & Fenhann, Jørgen, 2008. "Sustainable development benefits of clean development mechanism projects: A new methodology for sustainability assessment based on text analysis of the project design documents submitted for validatio," Energy Policy, Elsevier, vol. 36(8), pages 2773-2784, August.
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    Citations

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    Cited by:

    1. Jean-Marc MONTAUD & Nicolas PECASTAING, 2013. "A macroeconomic assessment of the Clean Development Mechanism (CDM) in Peru: A CGE analysis," Working Papers 2012-2013_3, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Jan 2013.
    2. Jo Dirix & Wouter Peeters & Sigrid Sterckx, 2016. "Is the Clean Development Mechanism delivering benefits to the poorest communities in the developing world? A critical evaluation and proposals for reform," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 18(3), pages 839-855, June.
    3. Silvia Cruz & Sonia Paulino & Faiz Gallouj, 2014. "Innovation in brazilian landfills: a servppin perspective," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2014(3), pages 79-100.
    4. Pécastaing, Nicolas, 2013. "L’impact du mécanisme de développement propre (MDP) sur le développement « durable » : le cas du Pérou," L'Actualité Economique, Société Canadienne de Science Economique, vol. 89(1), pages 39-56, Mars.
    5. Jean-Marc MONTAUD & Nicolas PECASTAING, 2013. "Does Mexico Benefit from the Clean Development Mechanism? A Macroeconomic and Environmental General Equilibrium Analysis," Working Papers 2013-2014_5, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Oct 2013.
    6. Mandaloufas, Melissa & Lamas, Wendell de Queiroz & Brown, Scott & Irizarry Quintero, Anamari, 2015. "Energy balance analysis of the Brazilian alcohol for flex fuel production," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 403-414.
    7. repec:unu:wpaper:wp2012-072 is not listed on IDEAS
    8. Uddin, Noim & Blommerde, Mascha & Taplin, Ros & Laurence, David, 2015. "Sustainable development outcomes of coal mine methane clean development mechanism Projects in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 1-9.
    9. He, Jingjing & Huang, Yongfu & Tarp, Finn, 2012. "Is the Clean Development Mechanism Promoting Sustainable Development?," WIDER Working Paper Series 072, World Institute for Development Economic Research (UNU-WIDER).
    10. Charikleia Karakosta, 2016. "A Holistic Approach for Addressing the Issue of Effective Technology Transfer in the Frame of Climate Change," Energies, MDPI, Open Access Journal, vol. 9(7), pages 1-20, June.
    11. Jacques, David A. & Guan, Dabo & Geng, Yong & Xue, Bing & Wang, Xiaoguang, 2013. "Inter-provincial clean development mechanism in China: A case study of the solar PV sector," Energy Policy, Elsevier, vol. 57(C), pages 454-461.
    12. Li, Y.P. & Huang, G.H. & Li, M.W., 2014. "An integrated optimization modeling approach for planning emission trading and clean-energy development under uncertainty," Renewable Energy, Elsevier, vol. 62(C), pages 31-46.
    13. repec:eee:enepol:v:114:y:2018:i:c:p:108-113 is not listed on IDEAS
    14. Viardot, Eric, 2013. "The role of cooperatives in overcoming the barriers to adoption of renewable energy," Energy Policy, Elsevier, vol. 63(C), pages 756-764.
    15. Wang, Can & Zhang, Weishi & Cai, Wenjia & Xie, Xi, 2013. "Employment impacts of CDM projects in China's power sector," Energy Policy, Elsevier, vol. 59(C), pages 481-491.
    16. Nautiyal, Himanshu & Varun,, 2012. "Progress in renewable energy under clean development mechanism in India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(5), pages 2913-2919.
    17. repec:eee:wdevel:v:100:y:2017:i:c:p:123-132 is not listed on IDEAS
    18. 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.

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