Ex-Post CDM BaseLines, Self-Leakage and Counterproductive CDM

Jiro Akita, Haruo Imai and Hidenori Niizawa
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Jiro Akita: Graduate School of Economics and Management, Tohoku University
Hidenori Niizawa: School of Econimics, University of Hyogo

KIER Working Papers from Kyoto University, Institute of Economic Research

Abstract: In thsi paper, we examine the consequences of CDM baselines that are influenced by the endogenous choice of output levels on the part of firms participating in CDM projects. When a CDM project reduces per output emissions level, so-called ex-post baseline methodology may well cause output to increase. Such output enhancing effect constitutes a form of self-leakage, We show that such self-leakage is likely to emerge when output demand is sufficiently elastic. Furthermore the self-leakage may lead to total emissions increase, which is the case of perverse counterprodutive CDM. We show that such counterproductive CDM is likely to occur again when output demand is sufficiently elastic.

Keywords: CDM; baseline; Leakage (search for similar items in EconPapers)
Pages: 12pages
Date: 2005-10
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:kyo:wpaper:607

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