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Additionality reconsidered: lax criteria may not benefit developing countries

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  • Jusen Asuka
  • Kenji Takeuchi

Abstract

International negotiation on the additionality issue of the CDM (Clean Development Mechanism) seems to be proceeding without sufficient information or understanding. Especially apparent is a lack of recognition that the non-additional CERs (certified emission reductions) generated by relaxing the additionality criteria may lead to economic losses for developing countries. This article quantitatively reconfirms the effects of non-additional CERs on the international community, while clarifying that the generation of non-additional CERs in excess of a certain number will eventually lead to negative consequences for developing countries, even if these countries were able to acquire all the non-additional CERs. Furthermore, the Discussion section demonstrates that future system design would significantly affect the benefits of developing countries as well as the overall environmental integrity of the Kyoto mechanisms.

Suggested Citation

  • Jusen Asuka & Kenji Takeuchi, 2004. "Additionality reconsidered: lax criteria may not benefit developing countries," Climate Policy, Taylor & Francis Journals, vol. 4(2), pages 177-192, June.
    • Handle: RePEc:taf:tcpoxx:v:4:y:2004:i:2:p:177-192
    DOI: 10.1080/14693062.2004.9685519
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    References listed on IDEAS

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    1. Dutschke, Michael & Michaelowa, Axel, 2003. "Development Aid and the CDM - How to interpret "Financial Additionality"," HWWA Discussion Papers 228, Hamburg Institute of International Economics (HWWA).
    2. Dutschke, Michael & Michaelowa, Axel, 2003. "Development Aid and the CDM - How to Interpret "Financial Additionality"," Discussion Paper Series 26243, Hamburg Institute of International Economics.
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    Cited by:

    1. Larson, Donald F. & Ambrosi, Philippe & Dinar, Ariel & Rahman, Shaikh Mahfuzur & Entler, Rebecca, 2008. "Carbon markets, institutions, policies, and research," Policy Research Working Paper Series 4761, The World Bank.

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