IDEAS home Printed from https://ideas.repec.org/a/spr/masfgc/v20y2015i7p1137-1153.html
   My bibliography  Save this article

An econometric analysis of sub-national Clean Development Mechanism performance in China

Author

Listed:
  • Jinshan Zhu
  • Hui Yao
  • Yingkai Tang
  • Liyong Wang

Abstract

The objective of this research is to conduct a quantitative analysis of China’s sub-national Clean Development Mechanism (CDM) performance as a case study of unbalanced CDM performance within a CDM host country. Key results are as follows: First, investment climate is the most decisive factor, which can explain about 48 % (adjusted R-squared) of China’s sub-national CDM performance at significance level 0.1 %. Second, general economic and investment conditions have a collective determination effect, which together explain about 50 % (adjusted R-squared) of sub-nationall CDM performance. Third, when compared with previous research in which the economic and investment conditions explain about 55 % (adjusted R-squared) of unbalanced CDM performance on the international level, it becomes clear that the impact of the economic and investment conditions on China’s sub-national unbalanced CDM performance resembles the unbalanced performance at the international level. Hence, we conclude that the sub-national unbalanced CDM performance in China is similar to that of the international level, and is influenced by similar determining factors. This finding casts doubt on the previous policy suggestion to fix the geographically unbalanced CDM performance simply by national discrimination, such as by revoking CDM eligibility of an entire host country. Consequently, a more tailored approach is advisable to manage that eligibility on the sub-national level. This is a more precise response to geographically unbalanced CDM performance and is less likely to discourage participation of the dominant CDM host countries in international climate mitigation. Copyright Springer Science+Business Media Dordrecht 2015

Suggested Citation

  • Jinshan Zhu & Hui Yao & Yingkai Tang & Liyong Wang, 2015. "An econometric analysis of sub-national Clean Development Mechanism performance in China," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 20(7), pages 1137-1153, October.
    • Handle: RePEc:spr:masfgc:v:20:y:2015:i:7:p:1137-1153
    DOI: 10.1007/s11027-013-9525-4
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11027-013-9525-4
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11027-013-9525-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alexandre Kossoy & Philippe Ambrosi, "undated". "State and Trends of the Carbon Market 2010," World Bank Publications - Reports 13401, The World Bank Group.
    2. Dechezleprêtre, Antoine & Glachant, Matthieu & Ménière, Yann, 2008. "The Clean Development Mechanism and the international diffusion of technologies: An empirical study," Energy Policy, Elsevier, vol. 36(4), pages 1273-1283, April.
    3. Archibugi, Daniele & Coco, Alberto, 2004. "A New Indicator of Technological Capabilities for Developed and Developing Countries (ArCo)," World Development, Elsevier, vol. 32(4), pages 629-654, April.
    4. Mehrotra, Aaron & Pääkkönen, Jenni, 2011. "Comparing China's GDP statistics with coincident indicators," Journal of Comparative Economics, Elsevier, vol. 39(3), pages 406-411, September.
    5. Qiang Wang, 2013. "China has the capacity to lead in carbon trading," Nature, Nature, vol. 493(7432), pages 273-273, January.
    6. Karan Capoor & Philippe Ambrosi, "undated". "State and Trends of the Carbon Market 2006 : Update, January 1-September 30, 2006," World Bank Publications - Reports 13414, The World Bank Group.
    7. Franck Lecocq & Karan Capoor, "undated". "State and Trends of the Carbon Market 2005," World Bank Publications - Reports 13411, The World Bank Group.
    8. Karan Capoor & Philippe Ambrosi, "undated". "State and Trends of the Carbon Market 2007," World Bank Publications - Reports 13407, The World Bank Group.
    9. Karan Capoor & Philippe Ambrosi, "undated". "State and Trends of the Carbon Market 2009," World Bank Publications - Reports 13403, The World Bank Group.
    10. Jeff Tollefson, 2008. "Carbon-trading market has uncertain future," Nature, Nature, vol. 452(7187), pages 508-509, April.
    11. Karan Capoor & Philippe Ambrosi, "undated". "State and Trends of the Carbon Market 2006 : Update, January 1-September 30, 2006," World Bank Publications - Reports 13415, The World Bank Group.
    12. Nicholas Linacre & Alexandre Kossoy & Philippe Ambrosi, "undated". "State and Trends of the Carbon Market 2011," World Bank Publications - Reports 13399, The World Bank Group.
    13. Rae Kwon Chung, 2007. "A CER discounting scheme could save climate change regime after 2012," Climate Policy, Taylor & Francis Journals, vol. 7(2), pages 171-176, March.
    14. Karan Capoor & Philippe Ambrosi, "undated". "State and Trends of the Carbon Market 2008," World Bank Publications - Reports 13405, The World Bank Group.
    15. repec:zbw:bofitp:2011_001 is not listed on IDEAS
    16. Seres, Stephen & Haites, Erik & Murphy, Kevin, 2009. "Analysis of technology transfer in CDM projects: An update," Energy Policy, Elsevier, vol. 37(11), pages 4919-4926, November.
    17. Zhu, Jinshan, 2012. "The Correlated Factors of the Uneven Performances of the CDM Countries," IEL Working Papers 11, Institute of Public Policy and Public Choice - POLIS.
    18. Karan Capoor & Philippe Ambrosi, "undated". "State and Trends of the Carbon Market 2006," World Bank Publications - Reports 13408, The World Bank Group.
    19. Karan Capoor & Philippe Ambrosi, "undated". "State and Trends of the Carbon Market 2006 : A Focus on Africa," World Bank Publications - Reports 13412, The World Bank Group.
    20. Wolfgang Sterk & Bettina Wittneben, 2006. "Enhancing the clean development mechanism through sectoral approaches: definitions, applications and ways forward," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 6(3), pages 271-287, September.
    21. Silayan, Alan, 2005. "Equitable Distribution of CDM Projects Among Developing Countries," Report Series 26098, Hamburg Institute of International Economics.
    22. Karan Capoor & Philippe Ambrosi, "undated". "State and Trends of the Carbon Market 2009," World Bank Publications - Reports 13402, The World Bank Group.
    23. Jung, Martina, 2006. "Host country attractiveness for CDM non-sink projects," Energy Policy, Elsevier, vol. 34(15), pages 2173-2184, October.
    24. World Bank, 2011. "A Guide to the World Bank : Third Edition," World Bank Publications - Books, The World Bank Group, number 2342.
    25. Alexandre Kossoy & Pierre Guigon, "undated". "State and Trends of the Carbon Market 2012," World Bank Publications - Reports 13336, The World Bank Group.
    26. 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.
    27. Karan Capoor & Philippe Ambrosi, "undated". "State and Trends of the Carbon Market 2006 : A Focus on Africa," World Bank Publications - Reports 13413, The World Bank Group.
    28. Nicholas Linacre & Alexandre Kossoy & Philippe Ambrosi, "undated". "State and Trends of the Carbon Market 2011," World Bank Publications - Reports 13400, The World Bank Group.
    29. Lloyd, Bob & Subbarao, Srikanth, 2009. "Development challenges under the Clean Development Mechanism (CDM)--Can renewable energy initiatives be put in place before peak oil?," Energy Policy, Elsevier, vol. 37(1), pages 237-245, January.
    30. Karan Capoor & Philippe Ambrosi, "undated". "State and Trends of the Carbon Market 2008," World Bank Publications - Reports 13404, The World Bank Group.
    31. Karan Capoor & Philippe Ambrosi, "undated". "State and Trends of the Carbon Market 2006," World Bank Publications - Reports 13409, The World Bank Group.
    32. Larson, Donald F. & Breustedt, Gunnar, 2007. "Will markets direct investments under the Kyoto Protocol ?," Policy Research Working Paper Series 4131, The World Bank.
    33. Ellis, Jane & Winkler, Harald & Corfee-Morlot, Jan & Gagnon-Lebrun, Frederic, 2007. "CDM: Taking stock and looking forward," Energy Policy, Elsevier, vol. 35(1), pages 15-28, January.
    34. Silayan, Alan, 2005. "Equitable distribution of CDM projects among developing countries," HWWA Reports 255, Hamburg Institute of International Economics (HWWA).
    35. Franck Lecocq & Karan Capoor, "undated". "State and Trends of the Carbon Market 2005," World Bank Publications - Reports 13410, The World Bank Group.
    36. Alexandre Kossoy & Pierre Guigon, "undated". "State and Trends of the Carbon Market 2012," World Bank Publications - Reports 13335, The World Bank Group.
    37. Karan Capoor & Philippe Ambrosi, "undated". "State and Trends of the Carbon Market 2007," World Bank Publications - Reports 13406, The World Bank Group.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Theresa Stahlke, 2020. "The impact of the Clean Development Mechanism on developing countries’ commitment to mitigate climate change and its implications for the future," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 25(1), pages 107-125, January.
    2. Jinshan Zhu, 2017. "Assessing China’s price review policy on Clean Development Mechanism projects," European Journal of Law and Economics, Springer, vol. 43(2), pages 285-316, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hong, Jin & Guo, Xiumei & Marinova, Dora & Yang, Fengli & Yu, Wentao, 2013. "Clean development mechanism in China: Regional distribution and prospects," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 93(C), pages 151-163.
    2. Stefan Schleicher & Claudia Kettner-Marx & Angela Köppl & Barbara Anzinger & Bernhard Cemper & Andreas Türk & Andreas Karner, 2011. "Analysis of Options to Move Beyond 20 Percent Greenhouse Gas Emission Reductions. Background and Evaluation of Impact Documents," WIFO Studies, WIFO, number 41607.
    3. Jinshan Zhu, 2017. "Assessing China’s price review policy on Clean Development Mechanism projects," European Journal of Law and Economics, Springer, vol. 43(2), pages 285-316, April.
    4. Jinshan Zhu, 2014. "Assessing China's discriminative tax on Clean Development Mechanism projects. Does China's tax have so many functions?," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 57(3), pages 447-466, March.
    5. Christoph Böhringer & Thomas Rutherford & Marco Springmann, 2015. "Clean-Development Investments: An Incentive-Compatible CGE Modelling Framework," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 60(4), pages 633-651, April.
    6. Liu, Liwei & Chen, Chuxiang & Zhao, Yufei & Zhao, Erdong, 2015. "China׳s carbon-emissions trading: Overview, challenges and future," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 254-266.
    7. Bryan, Elizabeth & Akpalu, Wisdom & Yesuf, Mahmud & Ringler, Claudia, 2008. "Global carbon markets: Are there opportunities for Sub-Saharan Africa?," IFPRI discussion papers 832, International Food Policy Research Institute (IFPRI).
    8. Iordanis Angelos Kalaitzoglou & Boulis Maher Ibrahim, 2015. "Liquidity and resolution of uncertainty in the European carbon futures market," Post-Print hal-01107956, HAL.
    9. Bohringer, Christoph & Rutherford, Thomas F. & Springmannc, Marco, 2013. "Clean-development investments : an incentive-compatible CGE modeling framework," Policy Research Working Paper Series 6720, The World Bank.
    10. Hayashi, Daisuke & Huenteler, Joern & Lewis, Joanna I., 2018. "Gone with the wind: A learning curve analysis of China's wind power industry," Energy Policy, Elsevier, vol. 120(C), pages 38-51.
    11. Pahle, Michael & Fan, Lin & Schill, Wolf-Peter, 2011. "How Emission Certificate Allocations Distort Fossil Investments: The German Example," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 39(4), pages 1975-1987.
    12. Rohit Jindal & Brent Swallow & John Kerr, 2008. "Forestry‐based carbon sequestration projects in Africa: Potential benefits and challenges," Natural Resources Forum, Blackwell Publishing, vol. 32(2), pages 116-130, May.
    13. Kalaitzoglou, Iordanis Angelos & Ibrahim, Boulis Maher, 2015. "Liquidity and resolution of uncertainty in the European carbon futures market," International Review of Financial Analysis, Elsevier, vol. 37(C), pages 89-102.
    14. Charles Roger & Satishkumar Belliethathan, 2016. "Africa in the global climate change negotiations," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 16(1), pages 91-108, February.
    15. Peter A Minang & Michael K. McCall, 2008. "Multi-Level Governance Conditions for Implementing Multilateral Environmental Agreements: The Case of CDM Forestry Readiness in Cameroon," Energy & Environment, , vol. 19(6), pages 845-860, November.
    16. Jongmin Yu & Mindy L. Mallory, 2020. "Carbon price interaction between allocated permits and generated offsets," Operational Research, Springer, vol. 20(2), pages 671-700, June.
    17. Luying Wang & Kai Su & Xuebing Jiang & Xiangbei Zhou & Zhu Yu & Zhongchao Chen & Changwen Wei & Yiming Zhang & Zhihong Liao, 2022. "Measuring Gross Ecosystem Product (GEP) in Guangxi, China, from 2005 to 2020," Land, MDPI, vol. 11(8), pages 1-19, August.
    18. Theresa Stahlke, 2020. "The impact of the Clean Development Mechanism on developing countries’ commitment to mitigate climate change and its implications for the future," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 25(1), pages 107-125, January.
    19. Schneider, Malte & Holzer, Andreas & Hoffmann, Volker H., 2008. "Understanding the CDM's contribution to technology transfer," Energy Policy, Elsevier, vol. 36(8), pages 2920-2928, August.
    20. Philipp Pattberg & Johannes Stripple, 2008. "Beyond the public and private divide: remapping transnational climate governance in the 21st century," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 8(4), pages 367-388, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:masfgc:v:20:y:2015:i:7:p:1137-1153. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.