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CDMs’ effect on environmentally sensitive productivity: evidence from Chinese provinces

Author

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  • Jin Guo

    (NDRC AMR: National Development and Reform Commission Academy of Macroeconomic Research)

  • Hanqiao Yang

    (NDRC AMR: National Development and Reform Commission Academy of Macroeconomic Research
    School of Economics, University of Edinburgh)

Abstract

Reducing emissions and improving sustainable development are two key goals of Clean development mechanism (CDM) projects. This study employs the global Malmquist-Luenberger index to estimate environmentally sensitive productivity from 2005 to 2013 at the Chinese provincial level and investigates the impact of CDM projects on sustainable development via panel quantile regressions. The findings reveal the CDM projects significantly stimulate environmentally sensitive productivity growth while developed provinces enjoy a greater promotion in growth. This effect becomes weaker as the environmentally sensitive productivity is enhanced. CDM projects with new constructions rather than refurbished existed constructions exhibit a strong promotion effect. By considering the investment and operating costs, environmentally friendly investment policies, with a focus on cost reduction, can attract technology transfer and promote the role of CDM projects. Furthermore, carbon emission reduction requires different incentives via the optimization of different CDM project types across regions.

Suggested Citation

  • Jin Guo & Hanqiao Yang, 2022. "CDMs’ effect on environmentally sensitive productivity: evidence from Chinese provinces," Letters in Spatial and Resource Sciences, Springer, vol. 15(3), pages 401-422, December.
    • Handle: RePEc:spr:lsprsc:v:15:y:2022:i:3:d:10.1007_s12076-021-00281-6
    DOI: 10.1007/s12076-021-00281-6
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    More about this item

    Keywords

    Clean development mechanism; Environmentally sensitive productivity; Global Malmquist-Luenberger index; Panel quantile regression;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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