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Can climate mitigation help the poor? Measuring impacts of the CDM in rural China

Yimeng Du () and Kenji Takeuchi ()
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Yimeng Du: Graduate School of Economics, Kobe University

No 1808, Discussion Papers from Graduate School of Economics, Kobe University

Abstract: This study aims to examine whether investment in climate change mitigation plays a role in poverty alleviation. We investigate impacts of the renewable energy-based clean development mechanism (RE-CDM) on rural communities in China. The impacts of RE-CDM projects are estimated by combining propensity score matching with the difference-in-differences approach. We found that the promotion of biomass-based CDM projects significantly contribute to income improvement, employment generation, and industrial transformation in rural communities in China. On the other hand, our estimation results reveal that large-scale wind and solar energy-based CDM projects have the potential to increase the labor force in the primary industry in rural areas.

Keywords: CDM; renewable energy; poverty alleviation; rural development; propensity score matching; difference-in-differences (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr, nep-cna, nep-ene, nep-env and nep-tra
Date: 2018-02
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http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2018/1808.pdf (application/pdf)

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