How can LDCs benefit from the CDM?: A panel data analysis of determinants of CDM project hosting

Katsuya Kasai

MPRA Paper from University Library of Munich, Germany

Abstract: The CDM plays an important role in the international GHG reduction activities. However, the distribution of CDM projects has been quite biased. Hence, considering the current distributional imbalance, this study was conducted aiming to identify the determinants of CDM project hosting in order to suggest potential measures for LDCs based on empirical evidence. By running random effects panel Tobit models, this paper sheds light on the fact that the four significant factors, GHG reduction potentials, governance levels, science and technology levels, and economic ties between host and Annex I countries in the private sector, have positive impacts on hosting CDM projects. This paper, therefore, denotes that the effective way to promote CDM activities in LDCs is to approach both sides: one is that LDCs accomplish the improvement of the significant factors by themselves; and the other is to facilitate the programmatic CDM activities by enlisting cooperation from international organisations or firms capable of investing in CDM activities in LDCs and/or providing capacity building programs. It is hoped that both Annex I and Non-Annex I countries tackle the climate change issue with stimulating the effective use of this innovative mechanism, CDM, not only in advanced developing countries but also in LDCs.

Keywords: CDM; Kyoto Protocol; LDCs; ODA; Tobit model (search for similar items in EconPapers)
JEL-codes: Q48 Q54 Q56 (search for similar items in EconPapers)
Date: 2012-08, Revised 2012-12
New Economics Papers: this item is included in nep-ene, nep-env and nep-ppm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/52137/1/MPRA_paper_52137.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:52137

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().