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Does the Clean Development Mechanism have a viable future?




The developed countries can meet part of their Kyoto commitments by investing in emission-reducing projects in developing countries (the Clean Development Mechanism, CDM). Since the developing countries have so far not been willing to accept binding emission commitments, the CDM has been the only mechanism available for ensuring emission-abatement measures in developing countries. We argue that the CDM is not an efficient tool for achieving deep cuts in global emissions and conclude that maintaining the CDM as an option for developing countries may in itself be a serious obstacle to more binding participation by these countries.

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  • Cathrine Hagem & Bjart Holtsmark, 2009. "Does the Clean Development Mechanism have a viable future?," Discussion Papers 577, Statistics Norway, Research Department.
  • Handle: RePEc:ssb:dispap:577

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    References listed on IDEAS

    1. Rathmann, M., 2007. "Do support systems for RES-E reduce EU-ETS-driven electricity prices?," Energy Policy, Elsevier, vol. 35(1), pages 342-349, January.
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    Cited by:

    1. Geethanjali Selvaretnam & Kannika Thampanishvong, 2008. "Future of the Clean Development Mechanism in tackling climate change," Discussion Paper Series, Department of Economics 200808, Department of Economics, University of St. Andrews.

    More about this item


    Clean development mechanism; climate agreement; emissions trading; emissions reductions.;

    JEL classification:

    • 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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