DEVELOPING COUNTRIES' RESPONSE TO THE CLEAN DEVELOPMENT MECHANISM UNDER IMPERFECT INFORMATION AND TRANSACTION COSTS

2015 ◽  
Vol 06 (01) ◽  
pp. 1550001 ◽  
Author(s):  
ALBERT N. HONLONKOU ◽  
RASHID M. HASSAN
Keyword(s):  
Climate Change ◽  
Developing Countries ◽  
Asymmetric Information ◽  
Transaction Costs ◽  
Clean Development Mechanism ◽  
Imperfect Information ◽  
Emerging Countries ◽  
Host Countries ◽  
Information Effect ◽  
Development Mechanism

Developing countries are struggling for finding resources to finance their adaptation to or mitigation of the effects of climate change. In that spirit, the Copenhagen summit, the fifteenth Conference of Parties (COP15) can be seen as a success since it ended with an important promise of creation of a common fund of $US 100 billions per year over the period 2013–2020 to help poor and emerging countries to support adoption of costly but eco-friendly technologies. However, implementation of former instruments shows mixed results. In this paper, we show that transaction costs effect dominates asymmetric information effect in impeding some developing countries to benefit from the clean development mechanism, one of the instruments of the implementation of the Kyoto Protocol. Thus environmental instruments may be useless if they are not supplemented by policies to reduce transaction costs in the host countries.

The Odd Couple: Uniting Climate Change Mitigation and Sustainable Development under the Clean Development Mechanism

2015 ◽  
Vol 0 (0) ◽  
Author(s):  
Alexander Condon
Keyword(s):  
Climate Change ◽  
Sustainable Development ◽  
Developing Countries ◽  
Foreign Aid ◽  
Clean Development Mechanism ◽  
Direct Investment ◽  
Climate Change Mitigation ◽  
Path Dependence ◽  
Change Mitigation ◽  
Development Mechanism

AbstractThis article assesses the effectiveness of the Kyoto Protocol’s Clean Development Mechanism (CDM) in meeting its twin aims of emission reductions and sustainable development. To date, the CDM has failed to achieve these goals. This article argues that the CDM’s shortcomings are due to path dependence, with the CDM stuck at a suboptimal equilibrium of insufficient institutions, capital and leadership. A reform scheme involving foreign direct investment, foreign aid and CDM amendments is prescribed for pushing the CDM to a more efficient and prosperous path. A properly functioning CDM would afford both developed and developing countries the opportunity to secure a more sustainable economic and environmental future.

Technology transfers in the Clean Development Mechanism: an incentives issue

2002 ◽  
Vol 7 (3) ◽  
pp. 449-466 ◽  
Author(s):  
Katrin Millock
Keyword(s):  
Developing Countries ◽  
Asymmetric Information ◽  
Clean Development Mechanism ◽  
Cost Savings ◽  
Cost Effective ◽  
Abatement Cost ◽  
Jel Classification ◽  
Emission Reductions ◽  
Technology Transfers ◽  
Development Mechanism

The Clean Development Mechanism (CDM) offers abatement cost savings under the Kyoto Protocol by allowing credits for emission reductions obtained in signatory developing countries. The paper argues that technology transfers can improve incentives for cost-effective emission reductions under bilateral CDM contracts when there is asymmetric information between the investor and the host party.JEL classification: Q20; D82

scholarly journals The Clean development mechanism

2016 ◽  
Vol 6 (1) ◽  
pp. 95-112
Author(s):  
Yusuf Muchelulea ◽  
Kevin Mulama
Keyword(s):  
Climate Change ◽  
Sustainable Development ◽  
Developing Countries ◽  
Technology Transfer ◽  
United Nations ◽  
Clean Development Mechanism ◽  
Developed Countries ◽  
Energy Development ◽  
If Current ◽  
Development Mechanism

The Clean development mechanism (CDM) is a new tool for promoting sustainable development in developing countries. It was established by the Kyoto Protocol under the United Nations Framework Convention on Climate Change (UNFCCC). It promises developed countries certified emission reductions (CERs) if they comply with their quantified emission targets and developing countries sustainable development benefits if they participate and invest in clean renewable technologies. Energy development through investments in clean technology transfer can contribute to sustainable development. However, sustainable development will only be achieved if current barriers and gaps facing CDM project implementation in Kenya are mitigated or removed altogether paving way for the development of more CDM projects in Kenya.

IMPLEMENTING ENVIRONMENTAL CONSIDERATIONS FOR JOINT IMPLEMENTATION AND THE CLEAN DEVELOPMENT MECHANISM

2001 ◽  
Vol 03 (01) ◽  
pp. 1-33 ◽  
Author(s):  
KATHERINE BEGG ◽  
GARY HAQ ◽  
MICHAEL CHADWICK ◽  
TIIT KALLASTE
Keyword(s):  
Climate Change ◽  
Clean Development Mechanism ◽  
Local Population ◽  
Ghg Emissions ◽  
Joint Implementation ◽  
Environmental Benefits ◽  
Host Countries ◽  
Marginal Costs ◽  
Energy Projects ◽  
Development Mechanism

The 1992 Climate Change Convention aims to stabilise greenhouse gas (GHG) emissions. Joint Implementation (JI) and the Clean Development Mechanism (CDM) are instruments which allow countries with high marginal costs of abatement to participate in emission reduction projects in countries with lower marginal abatement costs with the incentive of gaining carbon credits for the reduction of GHGs. The environmental benefits sought by the Convention relate mainly to he mitigation of climate change. However, consideration should also be given to other potential environmental, economic and social effects of JI/CDM projects on the local population and host country. This paper discusses the need for integrating environmental and social considerations into the JI/CDM process. It undertakes a preliminary retrospective environmental assessment of AIJ energy projects in the Czech Republic and Estonia. It also proposes support for capacity building and data collection systems in host countries, application of a simple participative scoping exercise for all projects followed by further work as necessary, upgrading of the Uniform Reporting Format for projects, and incorporation into project approval criteria.

scholarly journals An Assessment Of Clean Development Mechanism Project Contribution To Sustainable Development In Nigeria

2016 ◽  
Vol 15 (6) ◽  
pp. 315-328 ◽  
Author(s):  
Surendran Pillay
Keyword(s):  
Climate Change ◽  
Sustainable Development ◽  
Developing Countries ◽  
Greenhouse Gases ◽  
Clean Development Mechanism ◽  
Skewed Distribution ◽  
Clean Development Mechanism Project ◽  
Reduce Emissions ◽  
Economic Sustainable Development ◽  
Development Mechanism

A Clean Development Mechanism (CDM) is a market-based climate change instrument used to reduce emissions of greenhouse gases. CDM’s have become popular in many developing countries, however given the materially skewed distribution of CDM projects in developing countries it not clear whether CDM projects contribute materially to environmental and economic sustainable development in developing countries. This study examines the effect of CDM on sustainable development in Nigeria by reviewing sample of working CDM projects in Nigeria against globally established sustainable development criteria. Possible amendments to CDM policy are then reviewed based on the findings made during the study. 

scholarly journals Road-rail intermodality and the Clean Development Mechanism

2021 ◽  
Vol 15 ◽  
pp. 77-83
Author(s):  
Rodrigo Galbieri ◽  
André Felipe Simões
Keyword(s):  
Climate Change ◽  
United Nations ◽  
Clean Development Mechanism ◽  
Partial Replacement ◽  
Executive Board ◽  
The Road ◽  
Mobile Sources ◽  
Cargo Transport ◽  
Transportation Sector ◽  
Development Mechanism

The approval of methodologies involving the transportation sector confronts methodological concepts that hinder the eligibility of such projects as Clean Development Mechanism, mainly because it is a segment whose emissions come from mobile sources. The verification of additionality and monitoring of emissions, in principle, can be regarded as some of the key barriers to fit transportation sector projects into the CDM framework. This paper discusses these issues and examines, in particular, the road-rail intermodality. Since the partial replacement of cargo transport via trucks by wagon trains presents a great potential for mitigating emissions of greenhouse gases, this paper also analyzes the characteristics that a project involving road-rail intermodality must possess in order to be approved by the Executive Board of the United Nations Framework Convention on Climate Change. It also analyzes the main difficulties that such a project might face.

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