Clean Development Mechanism; Environment; Carbon emission
Résumé :
This paper discusses the role of the Clean Development Mechanism (CDM) in the market for carbon quotas and countries' commitments to reduce their carbon emission levels. We show that the CDM contributes to an efficient funding of clean technology investments in least developed countries. However, the CDM is not neutral on the global level of carbon emissions as it entices countries to raise their emission caps. The CDM may also make inappropriate the inclusion of any country that takes no emission abatement commitment. It can even make inefficient a country's decision to commit to an emission target. The implications of the presence of non-additional projects are also analyzed.
Disciplines :
Microéconomie Domaines particuliers de l’économie (santé, travail, transport...)
Auteur, co-auteur :
PICARD, Pierre M ; University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)
Bréchet, Thierry; Université Catholique de Louvain - UCL > CORE and Louvain School of Management
Ménière, Yann; Ecole des Mines de Paris > CERNA
Co-auteurs externes :
yes
Langue du document :
Anglais
Titre :
The Clean Development Mechanism in a world carbon market
