Assessing the Effects of Kyoto Mechanisms on the Diffusion of Climate Change Mitigation Technologies
No 2015-15, AGI Working Paper Series from Asian Growth Research Institute
The Kyoto Mechanisms, namely, the Clean Development Mechanism(CDM), Joint Implementation(JI), and International Emissions Trading(IET), were introduced primarily to help Annex I countries attain emissions reduction targets cost efficiently. In addition, the introduction of the CDM and JI were expected to promote international technology transfer of climate technologies. To what extent do the Kyoto Mechanisms contribute to the international diffusion of climate technologies? What are the main factors that influence the international diffusion of climate technologies under the Kyoto Mechanisms? The purpose of this study is to explore the answers to these two research questions based on a review of a growing number of studies on this topic, particularly on the CDM, as well as an analysis of the data on main technologies, host and investing countries of CDM and JI projects. The study found first that the effects of the CDM and JI on the international transfer of climate technologies are neither strong nor weak, and second that these effects vary by host country, technology type and host country's absorptive capacity of technology. One of main implications of this study is the necessity of empirical studies about credit-incentive son technology innovation.
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