The Clean Development Mechanism in a world carbon market

Thierry Bréchet, Yann Ménière () and Pierre Picard

Canadian Journal of Economics, 2016, vol. 49, issue 4, 1569-1598

Abstract: 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.

JEL-codes: Q50 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: The Clean Development Mechanism in a world carbon market (2016)
Working Paper: The clean development mechanism in a world carbon market (2016)
Working Paper: The Clean Development Mechanism in a world carbon market (2016)
Working Paper: The Clean Development Mechanism in a Global Carbon Market (2012)
Working Paper: The clean development mechanism in a globalized carbon market (2011)
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