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Determinants of the efficiency of CDM and JCM projects: Viewing from financial and environmental outcomes


  • Mai Huong Hoang

    (Graduate School of Business Administration, Kobe University)

  • Mohammad Tazul Islam

    (Graduate School of Business Administration, Kobe University)

  • Michiyuki Yagi

    (Graduate School of Business Administration, Kobe University)

  • Katsuhiko Kokubu

    (Graduate School of Business Administration, Kobe University)


With the purpose of promoting clean development in developing countries, as well as increasing mitigation toward global warming issue, efforts have been made between government and companies through implementing Clean Development Mechanism and Joint Credit Mechanism projects. This study targets at identifying the determinants of the financial and environmental outcomes of CDM and JCM pilot projects, focusing on host party, project type, and project status. The CDM project data is collected for 11 years (2004 – 2014) from the Institute of Global Environmental Strategies whereas the JCM pilot project data covers 2 years (2013 – 2014) from Global Environment Centre Foundation. Result of this study shows that regarding JCM pilot projects, project type is a crucial determinant for environmental outcome. Meanwhile, regarding CDM projects, statistically significant determinants of environmental outcome are host party, project type, and project status. In terms of CDM financial outcome, only project type and project status show significant effects. It implies that there is no need for considering which country to implement CDM projects if the target is financial outcome. Instead of that, if aiming at projects’ environmental outcome, for either CDM or JCM, it is necessary for companies to take project type/ sector into consideration.

Suggested Citation

  • Mai Huong Hoang & Mohammad Tazul Islam & Michiyuki Yagi & Katsuhiko Kokubu, 2015. "Determinants of the efficiency of CDM and JCM projects: Viewing from financial and environmental outcomes," Discussion Papers 2015-25, Kobe University, Graduate School of Business Administration.
  • Handle: RePEc:kbb:dpaper:2015-25

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    Clean development mechanism; Joint crediting mechanism; Internal Rate of Return; greenhouse gas emissions; country and industry effects;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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