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Ex-Post CDM BaseLines, Self-Leakage and Counterproductive CDM

Author

Listed:
  • Jiro Akita

    (Graduate School of Economics and Management, Tohoku University)

  • Haruo Imai

    (Institute of Economic Research, Kyoto University)

  • Hidenori Niizawa

    (School of Econimics, University of Hyogo)

Abstract

In thsi paper, we examine the consequences of CDM baselines that are influenced by the endogenous choice of output levels on the part of firms participating in CDM projects. When a CDM project reduces per output emissions level, so-called ex-post baseline methodology may well cause output to increase. Such output enhancing effect constitutes a form of self-leakage, We show that such self-leakage is likely to emerge when output demand is sufficiently elastic. Furthermore the self-leakage may lead to total emissions increase, which is the case of perverse counterprodutive CDM. We show that such counterproductive CDM is likely to occur again when output demand is sufficiently elastic.

Suggested Citation

  • Jiro Akita & Haruo Imai & Hidenori Niizawa, 2005. "Ex-Post CDM BaseLines, Self-Leakage and Counterproductive CDM," KIER Working Papers 607, Kyoto University, Institute of Economic Research.
    • Handle: RePEc:kyo:wpaper:607
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    Cited by:

    1. M. Germain & A. Magnus & V. Steenberghe, 2007. "How to design and use the clean development mechanism under the Kyoto Protocol? A developing country perspective," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(1), pages 13-30, September.

    More about this item

    Keywords

    CDM; baseline; Leakage;
    All these keywords.

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