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

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  • Du, Yimeng
  • Takeuchi, Kenji

Abstract

This study examines whether investment in climate change mitigation contributes to poverty alleviation. We investigate the impacts of the renewable energy-based clean development mechanism (RE-CDM) projects 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 biomass-based CDM projects significantly contribute to income improvement and employment generation in rural communities in China. Our estimation results also reveal that wind energy-based CDM projects have the potential to increase income and the share of labor force in the primary industry in rural areas. These results suggest different channels through which renewable energy sources affect income.

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  • Du, Yimeng & Takeuchi, Kenji, 2019. "Can climate mitigation help the poor? Measuring impacts of the CDM in rural China," Journal of Environmental Economics and Management, Elsevier, vol. 95(C), pages 178-197.
    • Handle: RePEc:eee:jeeman:v:95:y:2019:i:c:p:178-197
    DOI: 10.1016/j.jeem.2019.03.007
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    Cited by:

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    7. Wang, Chaofan & Wang, Yilan & Zhao, Yujia & Shuai, Jing & Shuai, Chuanmin & Cheng, Xin, 2023. "Cognition process and influencing factors of rural residents' adoption willingness for solar PV poverty alleviation projects: Evidence from a mixed methodology in rural China," Energy, Elsevier, vol. 271(C).
    8. David Grover & Swaroop Rao, 2020. "Inequality, unemployment, and poverty impacts of mitigation investment: evidence from the CDM in Brazil and implications for a post-2020 mechanism," Climate Policy, Taylor & Francis Journals, vol. 20(5), pages 609-625, May.
    9. Xiao, De & Yu, Fan & Guo, Chenhao, 2023. "The impact of China's pilot carbon ETS on the labor income share: Based on an empirical method of combining PSM with staggered DID," Energy Economics, Elsevier, vol. 124(C).
    10. Stefano Clo' & Gianluca Iannucci & Alessandro Tampieri, 2024. "Emission permits and firms' environmental responsibility," Working Papers - Economics wp2024_06.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    11. Wang, Zhaohua & Ma, Junhua & Zhang, Bin & Yang, Yuantao & Wang, Bo & Zhao, Wenhui, 2023. "Does high speed railway alleviate housing vacancy rates? Evidence from smart meter data of household electricity consumption," Transportation Research Part A: Policy and Practice, Elsevier, vol. 176(C).
    12. Jingbo Cui & Zhenxuan Wang & Haishan Yu, 2022. "Can International Climate Cooperation Induce Knowledge Spillover to Developing Countries? Evidence from CDM," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(4), pages 923-951, August.
    13. Hu, Yuan & Kuhn, Lena & Zeng, Weizhong & Glauben, Thomas, 2023. "Who benefits from payments for ecosystem services? Policy lessons from a forest carbon sink program in China," Ecological Economics, Elsevier, vol. 214(C).
    14. Zhuo, Chengfeng & Xie, Yuping & Mao, Yanhua & Chen, Pengqin & Li, Yiqiao, 2022. "Can cross-regional environmental protection promote urban green development: Zero-sum game or win-win choice?," Energy Economics, Elsevier, vol. 106(C).
    15. Wan, Panbing & Zhang, ZhongXiang & Chen, Lin, 2024. "Environmental co-benefits of climate mitigation: Evidence from clean development mechanism projects in China," China Economic Review, Elsevier, vol. 85(C).
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    17. Ottonelli, Janaina & Lazaro, Lira Luz Benites & Andrade, José Célio Silveira & Abram, Simone, 2023. "Do solar photovoltaic clean development mechanism projects contribute to sustainable development in Latin America? Prospects for the Paris Agreement," Energy Policy, Elsevier, vol. 174(C).
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    More about this item

    Keywords

    CDM; Renewable energy; Poverty alleviation; Rural development; Propensity score matching; Difference-in-differences;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • 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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