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Interest Groups and Efficient Design of the Clean Development Mechanism under the Kyoto Protocol

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  • Dutschke, Michael
  • Michaelowa, Axel

Abstract

The implementation of activities aimed to mitigate global greenhouse gas emissions is more cost-efficient in developing countries than in most of the industrialized world. A Clean Development Mechanism (CDM) is to assure that the interests of all parties implicated in Joint Implementation between industrialized and developing countries be equally represented. This mechanism was decided upon on the Kyoto Conference of the Parties to the Framework Convention on Climate Change, but no provisions on the construction of the CDM were taken. The authors propose it to take the form of a clearinghouse and a project fund. In the light of game-theoretical analysis and practical experience collected during the pilot phase for Activities Implemented Jointly which started in 1995, they advocate a clearly defined set of rules and incentives in order to balance the variety of interests involved and at the same time make the CDM an efficient instrument in preventing man-made climate change.

Suggested Citation

  • Dutschke, Michael & Michaelowa, Axel, 1998. "Interest Groups and Efficient Design of the Clean Development Mechanism under the Kyoto Protocol," Discussion Paper Series 26135, Hamburg Institute of International Economics.
    • Handle: RePEc:ags:hwwadp:26135
    DOI: 10.22004/ag.econ.26135
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    Citations

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    Cited by:

    1. Katrin Millock, 1999. "Endogenous Monitoring: a New Challenge for the Regulation of Energy Externalities," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 68(4), pages 635-646.
    2. Richard S.J. Tol, 2013. "Long live the Kyoto Protocol!," Chapters, in: Roger Fouquet (ed.), Handbook on Energy and Climate Change, chapter 14, pages 344-351, Edward Elgar Publishing.
    3. Silayan, Alan, 2005. "Equitable Distribution of CDM Projects Among Developing Countries," Report Series 26098, Hamburg Institute of International Economics.
    4. Silayan, Alan, 2005. "Equitable distribution of CDM projects among developing countries," HWWA Reports 255, Hamburg Institute of International Economics (HWWA).
    5. Röttgers, Dirk & Grote, Ulrike, 2014. "Africa and the Clean Development Mechanism: What Determines Project Investments?," World Development, Elsevier, vol. 62(C), pages 201-212.
    6. Strand, Jon & Rosendahl, Knut Einar, 2012. "Global emissions effects of CDM projects with relative baselines," Resource and Energy Economics, Elsevier, vol. 34(4), pages 533-548.

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    Keywords

    Environmental Economics and Policy;

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