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Do we know each other? Bilateral ties and the location of clean development mechanism projects

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  • Nives Dolšak
  • Emily Crandall

Abstract

This paper examines how bilateral ties between developed (home) countries and developing (host) countries influence the location of Clean Development Mechanism projects (CDMs). With the home-host country pair as the unit of analysis (2,058 country-pairs), we employ a logistic regression model to analyze decisions of home countries in selecting the location for their CDMs. We are most interested in examining how home countries’ familiarity with the host country influences CDM location decisions. The familiarity factors are: (1) colonial history; (2) bilateral trade; and (3) bilateral aid. Using a binary logistical model, we find that that bilateral familiarity factors strongly influence CDM location decisions. Further, with respect to host country characteristics, we find that total carbon dioxide emissions and UNFCCC specific domestic institutions influence CDM location decisions, but not general investment institutions or high carbon intensity of host country economies. Copyright Springer Science+Business Media Dordrecht 2013

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  • Nives Dolšak & Emily Crandall, 2013. "Do we know each other? Bilateral ties and the location of clean development mechanism projects," Climatic Change, Springer, vol. 118(3), pages 521-536, June.
    • Handle: RePEc:spr:climat:v:118:y:2013:i:3:p:521-536
    DOI: 10.1007/s10584-013-0694-7
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    2. Moses Herbert Lubinga & Adrino Mazenda, 2024. "Empirical Analysis of the Effect of Institutional Governance Indicators on Climate Financing," Economies, MDPI, vol. 12(2), pages 1-19, January.

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