Factors Affecting Levels of International Cooperation in Carbon Abatement Projects
The Clean Development Mechanism, a provision of The Kyoto Protocol, allows countries that have pledged to reduce their greenhouse gas emissions to gain credit toward their treaty obligations by investing in projects located in developing (host) cou...
| Main Authors: | , , , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
Washington, DC: World Bank
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2008/11/10049439/factors-affecting-levels-international-cooperation-carbon-abatement-projects http://hdl.handle.net/10986/6314 |
| Summary: | The Clean Development Mechanism, a
provision of The Kyoto Protocol, allows countries that have
pledged to reduce their greenhouse gas emissions to gain
credit toward their treaty obligations by investing in
projects located in developing (host) countries. Such
projects are expected to benefit both parties by providing
low-cost abatement opportunities for the investor-country,
while facilitating capital and technology flows to the host
country. This paper analyzes the Clean Development Mechanism
market, emphasizing the cooperation aspects between host and
investor countries. The analysis uses a dichotomous
(yes/no) variable and three continuous variants to measure
the level of cooperation, namely the number of joint
projects, the volume of carbon dioxide abatement, and the
volume of investment in the projects. The results suggest
that economic development, institutional development, the
energy structure of the economies, the level of country
vulnerability to various climate change effects, and the
state of international relations between the host and
investor countries are good predictors of the level of
cooperation in Clean Development Mechanism projects. The
main policy conclusions include the importance of
simplifying the project regulation/clearance cycle;
improving the governance structure host and investor
countries; and strengthening trade or other long-term
economic activities that engage the countries. |
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