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How to use the clean development mechanism in the residential sector? The case of Brazilian refrigerators

Author

Listed:
  • H. Khalil

    (CIRED - centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

  • C. Cohen

    (COPPE-UFRJ - Instituto Alberto Luiz Coimbra de Pós-Graduação e Pesquisa de Engenharia - UFRJ - Universidade Federal do Rio de Janeiro [Brasil] = Federal University of Rio de Janeiro [Brazil] = Université fédérale de Rio de Janeiro [Brésil])

  • As Szklo

    (COPPE-UFRJ - Instituto Alberto Luiz Coimbra de Pós-Graduação e Pesquisa de Engenharia - UFRJ - Universidade Federal do Rio de Janeiro [Brasil] = Federal University of Rio de Janeiro [Brazil] = Université fédérale de Rio de Janeiro [Brésil])

Abstract

The definition of simple and reliable emission baselines is crucial to foster clean development mechanism (CDM) projects. This paper assesses a project methodology that could boost large-scale energy-efficiency projects in the sector of domestic appliances. The baseline appliance is defined a priori in a "conservative" manner as the design option minimizing life-cycle social costs. The project methodology consists in a program which rebates new appliances according to their emission savings compared to the baseline. Is the proposed baseline acceptable? What could be the impact of such project on emissions? To address these questions, we look for insights from a hypothetical case on Brazilian refrigerators. A rational choice model is developed which assumes that households select design options minimizing life-cycle private costs. Results suggest that electricity tariff distortions and financial constraints might hamper project performances and allow significant free-riding. Low income households remain trapped into low-efficiency choices and high income households adopt outperforming appliances, whether rebated or not. However, simple solutions likely to improve the project methodology do exist. (c) 2005 Elsevier Ltd. All rights reserved.

Suggested Citation

  • H. Khalil & C. Cohen & As Szklo, 2006. "How to use the clean development mechanism in the residential sector? The case of Brazilian refrigerators," Post-Print hal-00715572, HAL.
    • Handle: RePEc:hal:journl:hal-00715572
    DOI: 10.1016/j.enpol.2005.03.002
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    Cited by:

    1. Shrestha, Ram M. & Abeygunawardana, A.M.A.K., 2007. "Small-scale CDM projects in a competitive electricity industry: How good is a simplified baseline methodology?," Energy Policy, Elsevier, vol. 35(7), pages 3717-3728, July.
    2. Hultman, Nathan E. & Pulver, Simone & Guimarães, Leticia & Deshmukh, Ranjit & Kane, Jennifer, 2012. "Carbon market risks and rewards: Firm perceptions of CDM investment decisions in Brazil and India," Energy Policy, Elsevier, vol. 40(C), pages 90-102.
    3. Emma Paulsson, 2009. "A review of the CDM literature: from fine-tuning to critical scrutiny?," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 9(1), pages 63-80, February.

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