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Encouraging the implementation of small renewable electricity CDM projects: An economic analysis of different options

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  • Del Río, Pablo

Abstract

Apart from contributing to the mitigation of GHG emissions, the deployment of renewable electricity Clean Development Mechanism projects (RE-CDM) may provide substantial local economic, social and environmental sustainability benefits to host countries. However, in spite of these advantages, a wide array of barriers prevents the realisation of these projects. They compete with other CDM options which lead to cheaper GHG emissions reductions but which do not provide as much opportunities for sustainable development in developing countries. Taking into account that, in contrast to GHG benefits, sustainability benefits are not valued in the market place and that article 12 of the Kyoto Protocol envisages two objectives for the CDM (cost-effective emissions reductions and contribution to sustainability), this market mechanism might be leading to a "market failure" in RE-CDM projects. This paper explores the different barriers affecting the implementation of RE-CDM projects and proposes and analyses several policies and measures that could be implemented to encourage their deployment by tackling those obstacles.

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  • Del Río, Pablo, 2007. "Encouraging the implementation of small renewable electricity CDM projects: An economic analysis of different options," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(7), pages 1361-1387, September.
    • Handle: RePEc:eee:rensus:v:11:y:2007:i:7:p:1361-1387
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    2. 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.
    3. Blenkinsopp, T. & Coles, S.R & Kirwan, K., 2013. "Renewable energy for rural communities in Maharashtra, India," Energy Policy, Elsevier, vol. 60(C), pages 192-199.
    4. Karakosta, Charikleia & Doukas, Haris & Psarras, John, 2009. "Sustainable energy technologies in Israel under the CDM: Needs and prospects," Renewable Energy, Elsevier, vol. 34(5), pages 1399-1406.
    5. 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.
    6. Nedergaard, Peter, 2011. "The political economy of the clean development mechanism (CDM) governance system," MPRA Paper 33095, University Library of Munich, Germany.
    7. Yadoo, Annabel & Cruickshank, Heather, 2012. "The role for low carbon electrification technologies in poverty reduction and climate change strategies: A focus on renewable energy mini-grids with case studies in Nepal, Peru and Kenya," Energy Policy, Elsevier, vol. 42(C), pages 591-602.

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