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The future of the CDM: same same, but differentiated?

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  • STEFAN BAKKER
  • CONSTANZE HAUG
  • HARRO VAN ASSELT
  • JOYEETA GUPTA
  • RAOUF SAÏDI

Abstract

Policy-makers and scientists have raised concerns about the functioning of the Clean Development Mechanism (CDM), in particular regarding its low contribution to sustainable development, unbalanced regional and sectoral distribution of projects, and its limited contribution to global emission reductions. Differentiation between countries or project types has been proposed as a possible way forward to address these problems. An overview is provided of the different ways in which CDM differentiation could be implemented. The implications for the actors involved in the CDM are analysed, along with a quantitative assessment of the impacts on the carbon market, using bottom-up marginal abatement cost curves. The discounting of CDM credits, quota systems, or differentiated eligibility of countries could help to address several of the concerns raised. Preferential treatment may also make a limited contribution to achieving the aims of CDM differentiation by increasing opportunities for under-represented host countries. The impact on the carbon market appears to be limited for most options.

Suggested Citation

  • Stefan Bakker & Constanze Haug & Harro Van Asselt & Joyeeta Gupta & Raouf Saïdi, 2011. "The future of the CDM: same same, but differentiated?," Climate Policy, Taylor & Francis Journals, vol. 11(1), pages 752-767, January.
    • Handle: RePEc:taf:tcpoxx:v:11:y:2011:i:1:p:752-767
    DOI: 10.3763/cpol.2009.0035
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    1. repec:wbk:wboper:13402 is not listed on IDEAS
    2. Karan Capoor & Philippe Ambrosi, "undated". "State and Trends of the Carbon Market 2009," World Bank Publications - Reports 13403, The World Bank Group.
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    Cited by:

    1. Sabine Aresin, 2015. "Monitoring Abatement in the Presence of an Import Quota on CERs," Working Papers tax-mpg-rps-2015-11, Max Planck Institute for Tax Law and Public Finance.
    2. Kang, Moon Jung & Park, Jihyoun, 2013. "Analysis of the partnership network in the clean development mechanism," Energy Policy, Elsevier, vol. 52(C), pages 543-553.
    3. Koo, Bonsang, 2017. "Preparing hydropower projects for the post-Paris regime: An econometric analysis of the main drivers for registration in the Clean Development Mechanism," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 868-877.
    4. Suzi Kerr & Adam Millard-Ball, 2012. "Cooperation To Reduce Developing Country Emissions," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 3(04), pages 1-30.
    5. Drupp, Moritz A. & Baumgärtner, Stefan & Meyer, Moritz & Quaas, Martin F. & von Wehrden, Henrik, 2020. "Between Ostrom and Nordhaus: The research landscape of sustainability economics," Ecological Economics, Elsevier, vol. 172(C).
    6. Hieronymi, Philipp & Schüller, David, 2015. "The Clean-Development Mechanism, stochastic permit prices and energy investments," Energy Economics, Elsevier, vol. 47(C), pages 25-36.
    7. Kamleshan Pillay & Jorge E. Viñuales, 2016. "“Monetary” rules for a linked system of offset credits," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 16(6), pages 933-951, December.
    8. Lambert Schneider & Michael Lazarus & Carrie Lee & Harro van Asselt, 2017. "Restricted linking of emissions trading systems: options, benefits, and challenges," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 17(6), pages 883-898, December.
    9. Koo, Bonsang, 2017. "Examining the impacts of Feed-in-Tariff and the Clean Development Mechanism on Korea's renewable energy projects through comparative investment analysis," Energy Policy, Elsevier, vol. 104(C), pages 144-154.
    10. Sabine Aresin, 2015. "Reduced Allowability and the Allocation of Emission Abatement," Working Papers tax-mpg-rps-2015-12, Max Planck Institute for Tax Law and Public Finance.
    11. Mele, Antonio & Paglialunga, Elena & Sforna, Giorgia, 2021. "Climate cooperation from Kyoto to Paris: What can be learnt from the CDM experience?," Socio-Economic Planning Sciences, Elsevier, vol. 75(C).
    12. Kim, Jung Eun & Popp, David & Prag, Andrew, 2013. "The Clean Development Mechanism and neglected environmental technologies," Energy Policy, Elsevier, vol. 55(C), pages 165-179.
    13. Igor Shishlov & Valentin Bellassen, 2012. "10 lessons from 10 years of the CDM," Working Papers hal-01151437, HAL.

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