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CDM Potential for Rural Transition in China Case Study: Options in Yinzhou District, Zhejiang Province

Author

Listed:
  • Zhao, Xingshu
  • Michaelowa, Axel

Abstract

This paper aims to examine the potential of the Clean Development Mechanism (CDM) to address energy- related issues during the rural transition process in China, using a case study of quickly urbanizing and industrializing Yinzhou district in coastal Zhejiang province. Yinzhou's per capita GDP reached US$ 3100 in 2002, three times China's average, and is targeted to achieve $10,000 in 2020. We assess the current energy status of Yinzhou, and provide projections of energy consumption and CO2 emissions up to the year 2020. Energy resource shortages and limited possibilities to obtain coal-fired electricity from national grid illustrate the opening gap between energy supply and demand. We find that Yinzhou's CDM potential is concentrated in efficiency improvement on the demand side. In that context, we suggest to systematically explore the CDM potential in the industrial sector. Projects will have to involve many stakeholders and the necessary local capacity has to be built. These CDM projects can be considered as killing three birds with one stone, namely maintaining continuous economic growth, alleviating local environmental pollution as well as mitigating global climate change.

Suggested Citation

  • Zhao, Xingshu & Michaelowa, Axel, 2004. "CDM Potential for Rural Transition in China Case Study: Options in Yinzhou District, Zhejiang Province," HWWA Discussion Papers 291, Hamburg Institute of International Economics (HWWA).
  • Handle: RePEc:zbw:hwwadp:26152
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    References listed on IDEAS

    as
    1. Dees, Stephane, 1998. "Foreign Direct Investment in China: Determinants and Effects," Economic Change and Restructuring, Springer, vol. 31(2-3), pages 175-194.
    2. Samuel Fankhauser & Lucia Lavric, 2003. "The investment climate for climate investment: Joint Implementation in transition countries," Climate Policy, Taylor & Francis Journals, vol. 3(4), pages 417-434, December.
    3. Zhang, Zhong Xiang, 2001. "Why has the energy intensity fallen in China's industrial sector in the 1990s?: the relative importance of structural change and intensity change," CDS Research Reports 200111, University of Groningen, Centre for Development Studies (CDS).
    4. G. C. van Kooten, 2004. "Climate Change Economics," Books, Edward Elgar Publishing, number 3424.
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    More about this item

    Keywords

    Clean Development Mechanism; China; urbanization; energy efficiency;

    JEL classification:

    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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