Technology transfer and cost structure of clean development mechanism projects: an empirical study of Indian cases

Nils Simon (), Toshi Arimura, Minoru Morita (), Akihisa Kuriyama () and Kazuhisa Koakutsu ()
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Nils Simon: Waseda University
Minoru Morita: Waseda University
Akihisa Kuriyama: The Institute for Global Environmental Strategies
Kazuhisa Koakutsu: The Institute for Global Environmental Strategies

Environmental Economics and Policy Studies, 2017, vol. 19, issue 3, No 9, 609-633

Abstract: Abstract This research empirically estimates abatement costs under the Clean Development Mechanism (CDM) in India, using project-level data for 830 projects that had been registered as of April 2014. Emphasis lies on assessing the impact of international technology transfer on abatement costs and on testing whether CDM projects in India have experienced a “low-hanging fruits” problem or have benefitted from learning effects. The results suggest that projects that include technology transfer have higher abatement costs. However, this does not appear to be universally applicable when assessing technology transfer by project type. Second, no conclusive evidence is found to support a “low-hanging fruits” problem, both empirically and based on the finding that most Indian projects are conducted unilaterally. On the contrary, some project types showed that abatement costs decrease as more projects are implemented. Finally, results suggest increasing returns to scale as well as economies of time in terms of project duration.

Keywords: Clean Development Mechanism (CDM); Technology transfer; Climate changes; Low-hanging fruit problem; Renewable energies (search for similar items in EconPapers)
JEL-codes: Q54 Q55 Q56 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s10018-016-0175-0

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