Investments in Global Warming Mitigation: The Case of â€œActivities Implemented Jointlyâ€\x9D
This paper examines bilateral cooperation between developed countries (home country) and developing countries (host country) to reduce greenhouse gas emissions and to enhance carbon dioxide sinks. With the home-host country pair as the unit of analysis, our logistic regression model examines 158 Activities Implemented Jointly (AIJ) investment projects from 1993 until 2002 across 2541 country-pairs. Because the marginal costs of reducing emissions may be lower in developing countries, the AIJ projects served as a policy laboratory to assess whether such investments might be advantageous to both countries in the event future regimes allowed emission credits from such bilateral projects. Instead of investing in home countries where maximum pollution reductions (or carbon sequestration) might be possible, home countries invest in locations where they can conduct their policy experiments at low transaction costs. Prior trade and aid relationships were used as a proxy. Regarding energy projects, location decisions are driven by home countriesâ€™ desire to reduce air pollution that they receive from abroad. Geography â€“ proximity of a host country to a home country â€“ in interaction with host country's coal production, is a very important driver of location decision in AIJ energy sector projects. Location of sequestration projects is impacted by the host country's potential for avoiding deforestation as well as by previous aid and trade patterns between a home and a host country. Proximity is not important in this case. Copyright Springer Science + Business Media B.V. 2006
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 39 (2006)
Issue (Month): 3 (September)
|Contact details of provider:|| Web page: http://www.springer.com|
Web page: http://policysciences.org/index.html
|Order Information:||Web: http://www.springer.com/political+science/journal/11077/PS2|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Veronica Ward, 2002. "Environmental Regime Effectiveness: Confronting Theory with Evidence," Global Environmental Politics, MIT Press, vol. 2(2), pages 116-122, 05.
When requesting a correction, please mention this item's handle: RePEc:kap:policy:v:39:y:2006:i:3:p:233-248. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.