The Clean Development Mechanism (CDM)

The following sections are included:

• Contents

• Acknowledgments

• About the Authors

The following sections are included:

• ABOUT THIS BOOK

• BOOK OUTLINE

• BOOK CHAPTERS
  • An Updated Review of Carbon Markets, Institutions, Policies, and Research
  • The Activities Implemented Jointly Pilots: A Foundation for Clean Development Mechanism?
  • Cost of Mitigation under the Clean Development Mechanism
  • Diffusion of Kyoto's Clean Development Mechanism
  • Why Adoption of the Clean Development Mechanism Differs Across Countries?
  • Clean Development Mechanism as a Cooperation Mechanism
  • Why So Few Agricultural Projects in the Clean Development Mechanism?

• CONCLUSION AND POLICY IMPLICATIONS

• EPILOGUE

• REFERENCES

The following sections are included:

• SCIENCE AND POLICY

• FEATURES OF THE CLIMATE CHANGE FRAMEWORK
  • Obligations Under the Framework
  • Flexibility Mechanisms
  • Emission Allocations and the Choice of Policy Instruments
  • Current Instruments
  • Project Rules
  • The CDM Project Cycle
  • The JI Project Cycle
  • Land Management Projects
  • Supplementarity, Additionality, Diversion, and Carry Over
  • Compatibility with the Trade Agreements

• EXPECTED OUTCOMES FROM THE CLIMATE CHANGE FRAMEWORK
  • Policy Evaluations and Predictions
  • Model Structures and Technology
  • Market Power
  • Leakages, Ancillary Benefits, and Crowding Out
  • Uncertainty, Discounting, and Intergenerational Tradeoffs
  • Technology Development and Transfer as a Policy Instrument

• DOMESTIC POLICIES IN THE EUROPEAN UNION, THE US, AND AUSTRALIA
  • EU Emissions Trading Scheme
  • Integration with the Climate Change Framework
  • Regional Initiatives and Voluntary Markets

• CARBON MARKETS
  • Model Studies of Potential Size of the Market for the Flexibility Mechanisms
  • The Evolution of Carbon Project Financing
  • The Geographic Distribution of Kyoto-Project Credits

• CONCLUSIONS AND AREAS FOR FUTURE STUDY

• REFERENCES

• ANNEX 2.1: Glossary of Acronyms.

The following sections are included:

• ORIGINS OF THE AIJ PROGRAM

• RELATED STUDIES
  • Numeric Studies
  • Investment and Agency Approval
  • Multilateral and Bilateral Transaction Costs

• A MODEL OF PROJECT INVESTMENT
  • Conceptual Model
  • Applied Model
  • An Alternative Dichotomous Model
  • Internalized Agency Preferences and Transaction Costs
  • Additional Estimation Concerns

• DATA DESCRIPTION
  • AIJ Investments
  • Variables Affecting Investment Choice
  • Variables Affecting Agency Preferences

• EMPIRICAL RESULTS
  • Baseline Model Specification
  • Revisiting the Contemporaneous Correlation Assumption
  • Epilogue

• CONCLUSION

• REFERENCES

The following sections are included:

• ESTIMATING EMISSIONS ABATEMENT COST OF THE CDM
  • Background
  • The Conceptual Model
  • The Applied Emissions Abatement Cost Function

• DATA DESCRIPTION
  • Project Abatement Capacity
  • Initial Investment, Income from Power Sales, and Maintenance Costs

• MODEL SPECIFICATION AND ESTIMATION RESULTS

• CONCLUSIONS AND POLICY IMPLICATIONS

• REFERENCES

• ANNEX 4.1. The methodology for calculating (separating) the cost of emissions abatement for the CDM projects that produce tradable outputs

The following sections are included:

• TECHNOLOGY DIFFUSION LITERATURE

• MITIGATION POTENTIAL, MODEL PREDICTIONS, AND THE CDM PIPELINE

• IS CDM ON TRACK?
  • Data Description
  • Applied Diffusions Models
  • Estimation Results

• SUMMARY AND CONCLUSION

• REFERENCES

The following sections are included:

• THEORETICAL FRAMEWORK AND EMPIRICAL MODELS
  • The Empirical Models
  • Variables and Hypotheses

• DATA AND MEASUREMENTS

• ESTIMATION PROCEDURES

• RESULTS
  • Growth of CDM in the World and in Individual Countries
  • CDM Adoption by the Host Countries
  • CDM Adoption by the Investor (Annex B) Countries

• CONCLUSIONS AND POLICY IMPLICATIONS

• REFERENCES

• ANNEX 6.1: Methodology for the Data Collection on the Capital Cost Data From Clean Development Mechanism Project Activity
  • Methods in Obtaining Capital Cost Data
  • Perspective in Capital Cost Data

The following sections are included:

• CONCEPTUAL FRAMEWORK
  • Foreign Direct Investment, Foreign Aid, and International Trade
  • Enabling Environment: Governance, Regulations, and Business Climate

• HYPOTHESES

• DATA DESCRIPTION, VARIABLE CONSTRUCTION, AND EMPIRICAL SPECIFICATION

• ESTIMATION PROCEDURES

• DESCRIPTIVE STATISTICS RESULTS
  • Dyad-level Descriptive Statistics
  • Results for the Cooperation Estimates

• CONCLUSIONS AND POLICY IMPLICATIONS

• REFERENCES

• ANNEXE 7.1

The following sections are included:

• POTENTIAL SOURCES OF MITIGATION IN AGRICULTURE

• AGRICULTURAL AND LAND-USE PROJECTS UNDER THE CDM
  • Baseline Methodologies for Agricultural and Land-use Forestry Projects

• PROJECT MARKETS OUTSIDE THE CDM

• HURDLES TO INCLUDING AGRICULTURAL PROJECTS IN THE CDM
  • Objections to the CDM and their Influence on Its Design
  • Flexibility Mechanisms
  • Creating New Credits
  • Land Management Projects
  • Consequences for Pricing and Profitability

• ANCILLARY BENEFITS AND SUSTAINABLE RURAL DEVELOPMENT
  • Soil Carbon Sequestration and Productivity
  • Carbon Sequestration and Other Environmental Services

• PATHS FORWARD
  • Modifying the CDM
  • Supplemental and Additional Mechanisms for Investing in Land-use Mitigation Projects

• CONCLUSIONS

• REFERENCES

• ANNEXE

The following sections are included:

• AIJ AS A MODEL

• ABATEMENT COSTS VIA CDM

• DIFFUSION OF THE CDM

• ADOPTION DETERMINANTS

• CDM AS A COOPERATION MECHANISM

• WHY SO FEW AGRICULTURAL PROJECTS?

• THE DEBATE ON CDM PERFORMANCE COMPARED TO ITS ORIGINAL OBJECTIVES
  • The Mitigation Impact of the CDM
  • Stimulate Capital Flows
  • Did the CDM Tap the Lowest Cost Abatement Opportunities?
  • Technology Transfer
  • Promote Development

• FINAL REMARKS

• REFERENCES

The following sections are included:

• INDEX