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Can climate mitigation help the poor? Measuring impacts of the CDM in rural China

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  • Yimeng Du

    () (Graduate School of Economics, Kobe University)

  • Kenji Takeuchi

    () (Graduate School of Economics, Kobe University)

Abstract

This study aims to examine whether investment in climate change mitigation plays a role in poverty alleviation. We investigate impacts of the renewable energy-based clean development mechanism (RE-CDM) on rural communities in China. The impacts of RE-CDM projects are estimated by combining propensity score matching with the difference-in-differences approach. We found that the promotion of biomass-based CDM projects significantly contribute to income improvement, employment generation, and industrial transformation in rural communities in China. On the other hand, our estimation results reveal that large-scale wind and solar energy-based CDM projects have the potential to increase the labor force in the primary industry in rural areas.

Suggested Citation

  • Yimeng Du & Kenji Takeuchi, 2018. "Can climate mitigation help the poor? Measuring impacts of the CDM in rural China," Discussion Papers 1808, Graduate School of Economics, Kobe University.
  • Handle: RePEc:koe:wpaper:1808
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    File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2018/1808.pdf
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    References listed on IDEAS

    as
    1. Zhang, Junjie & Wang, Can, 2011. "Co-benefits and additionality of the clean development mechanism: An empirical analysis," Journal of Environmental Economics and Management, Elsevier, vol. 62(2), pages 140-154, September.
    2. Wang, Can & Zhang, Weishi & Cai, Wenjia & Xie, Xi, 2013. "Employment impacts of CDM projects in China's power sector," Energy Policy, Elsevier, vol. 59(C), pages 481-491.
    3. Zhao, Zhen-Yu & Li, Zhi-Wei & Xia, Bo, 2014. "The impact of the CDM (clean development mechanism) on the cost price of wind power electricity: A China study," Energy, Elsevier, vol. 69(C), pages 179-185.
    4. Olsen, Karen Holm & Fenhann, Jørgen, 2008. "Sustainable development benefits of clean development mechanism projects: A new methodology for sustainability assessment based on text analysis of the project design documents submitted for validatio," Energy Policy, Elsevier, vol. 36(8), pages 2773-2784, August.
    5. Matthias Weitzel & Wan-Hsin Liu & Andrea Vaona, 2015. "Determinants of technology transfer through the CDM: a within-country analysis for China," Climate Policy, Taylor & Francis Journals, vol. 15(5), pages 626-646, September.
    6. repec:eee:jeeman:v:86:y:2017:i:c:p:8-28 is not listed on IDEAS
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    Keywords

    CDM; renewable energy; poverty alleviation; rural development; propensity score matching; difference-in-differences;

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