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Africa and the Clean Development Mechanism: What Determines Project Investments?

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  • Röttgers, Dirk
  • Grote, Ulrike

Abstract

African countries have hardly used the opportunity to implement CDM projects and thereby turn environmental problems into business and development opportunities. This paper finds out why by identifying factors of CDM partnerships. Our gravity model analyzes flows of Certified Emission Reductions (CERs) between host and financier countries. Findings show that foreign direct investments, official development assistance, and trade have a positive influence on project attraction. A distinction between project initiation and CER flow size shows that the specific shortcomings of African countries lie with the initial attraction of investors. This points to an inadequacy in the initial process of project generation.

Suggested Citation

  • Röttgers, Dirk & Grote, Ulrike, 2014. "Africa and the Clean Development Mechanism: What Determines Project Investments?," World Development, Elsevier, vol. 62(C), pages 201-212.
  • Handle: RePEc:eee:wdevel:v:62:y:2014:i:c:p:201-212
    DOI: 10.1016/j.worlddev.2014.05.009
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    Cited by:

    1. 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.
    2. repec:vul:omefvu:v:9:y:2018:i:2:id:250 is not listed on IDEAS
    3. repec:taf:tcpoxx:v:16:y:2016:i:6:p:752-767 is not listed on IDEAS
    4. 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.
    5. Purdon, Mark, 2015. "Opening the Black Box of Carbon Finance “Additionality”: The Political Economy of Carbon Finance Effectiveness across Tanzania, Uganda, and Moldova," World Development, Elsevier, vol. 74(C), pages 462-478.

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