Hostname: page-component-cd9895bd7-lnqnp Total loading time: 0 Render date: 2024-12-27T09:32:48.288Z Has data issue: false hasContentIssue false
  • English
  • Français

Does Mexico benefit from the Clean Development Mechanism? A model-based scenario general equilibrium analysis

Published online by Cambridge University Press:  02 June 2015

Jean-Marc Montaud  and
Nicolas Pecastaing
Jean-Marc Montaud
Affiliation:
Center for the Theoretical Analysis and Handling of Economic Data, University of Pau and Pays de l'Adour, Pau, France. E-mail: [email protected]
Nicolas Pecastaing
Affiliation:
Center for the Theoretical Analysis and Handling of Economic Data, University of Pau and Pays de l'Adour, Avenue du Doyen Poplawski, B.P. 1633 64016, Pau Cedex, France. E-mail: [email protected]
Get access Rights & Permissions [Opens in a new window]

Abstract

Since 2000, the Clean Development Mechanism (CDM) under the Kyoto Protocol has included southern countries in the fight against climate change by encouraging northern countries to make environmentally friendly direct investments at the lowest cost in these developing nations. Although CDM investments have enjoyed great success, the question of the contribution of these investments to the development of the host countries remains insufficiently explored. This paper offers a computable general equilibrium model-based scenario, describing the potential economic and environmental impacts of CDM investments for Mexico. As modelled in this study, these investments should generate both additional demand for activities that produce the fixed capital goods required for their implementation and environmentally friendly technological changes in the production process for the electricity sector. The numerical simulations reveal the growth potential and important fund of development represented by the CDM for Mexico; however, they show that the environmental impact also appears broadly mixed and dependent on both the nature of the sectors it affects and the intensity of the technological change it generates.

Type
Research Article
Information
Environment and Development Economics , Volume 21 , Issue 2 , April 2016 , pp. 226 - 248
Copyright
Copyright © Cambridge University Press 2015 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Alexeew, J., Bergset, L., Meyer, K., Petersen, J., Schneider, L., and Unger, C. (2010), ‘An analysis of the relationship between the additionality of CDM projects and their contribution to sustainable development’, International Environmental Agreements: Politics, Law and Economics 10(3): 233–248.Google Scholar
Anagnostopoulos, K., Flamos, A., Kagiannas, A.G., and Psarras, J. (2004), ‘The impact of clean development mechanism in achieving sustainable development’, International Journal of Environmental Pollution 21(1): 1–23.Google Scholar
Anger, N., Böhringer, C., and Moslener, U. (2007), ‘Macroeconomic impacts of the CDM: the role of investment barriers and regulations’, Climate Policy 7: 500–517.CrossRefGoogle Scholar
Armington, P. (1969), ‘A theory of demand for product distinguished by place of production’, IMF Staff Paper 16(1): 159–178.Google Scholar
Banuri, T. and Gupta, S. (2000), ‘The Clean Development Mechanism and sustainable development: an economic analysis’, in Manila, G.P. (ed.), Implementation of the Kyoto Protocol, Manila: Asian Development Bank.Google Scholar
Barboza-Carrasco, I., Vázquez-Alvarado, J.M.P., and Matus-Gardea, J.A. (2009), ‘Mexico's social accounting matrix 2004’, Agrociencia 43(5): 551–558.Google Scholar
Begg, K., Parkinson, S., Horst, D.V.D., et al. (2003), ‘Encouraging CDM energy projects to aid poverty alleviation’, Final report of Project R8037 under the DFID KAR programme, Centre for Environmental Strategy, University of Surrey.Google Scholar
Böhringer, C. and Löschel, A. (2006), ‘Computable general equilibrium models for sustainability impact assessment: status quo and prospects’, Ecological Economics 60: 49–64.Google Scholar
Böhringer, C., Rutherford, T.F., and Springmann, M. (2013), ‘Clean development investments: an incentive-compatible CGE modelling framework’, Oldenburg Discussion Papers in Economics No. V-354-13, University of Oldenburg.Google Scholar
Bourguignon, F., Branson, W., and De Melo, J. (1989), ‘Macroeconomic adjustment and income distribution: a macro-micro simulation model’, Paris: Organisation for Economic Cooperation and Development.Google Scholar
Boyd, J. (2007), ‘Nonmarket benefits of nature: what should be counted in green GDP?’, Ecological Economics 61: 716–723.CrossRefGoogle Scholar
Boyd, E., Hultman, N., Roberts, J., et al. (2009), ‘Reforming the CDM for sustainable development: lessons learned and policy futures’, Environmental Science & Policy 12(7): 820–831.Google Scholar
Bumpus, A.G. and Cole, J.C. (2010), ‘How can the current CDM deliver sustainable development?’, Climate Change 1(4): 541–547.Google Scholar
Cosbey, A. (2006), ‘Defining and measuring the development dividend’, Meeting of the Expert Task Force of the IISD, International Institute for Sustainable Development, Winnipeg: IISD, p. 12.Google Scholar
Cosbey, A., Parry, J.E., Browne, J., Babu, Y.D., Bhandari, P., Drexhage, J., and Murphy, D. (2005), ‘Realizing the development dividend: making the CDM work for developing countries’, Phase 1 Report – prepublication version, Winnipeg: IISD, pp. 1–72.Google Scholar
Dechezleprêtre, A., Glachant, M., and Menière, Y. (2008), ‘The Clean Development Mechanism and the international diffusion of technologies: an empirical study’, Energy Policy 36: 1273–1281.Google Scholar
Dervis, K., De Melo, J., and Robinson, S. (1982), ‘General equilibrium models for development policy’, World Bank Research Publication CED BM, Washington, DC: World Bank, p. 36.Google Scholar
EIA (Energy Administration Information) (2004), International Energy Statistics: Mexico, [Available at] http://www.eia.gov.Google Scholar
European Commission, Food and Agriculture Organisation, International Monetary Fund, Organisation for Economic Co-operation and Development, United Nations, World Bank (2012), System of Environmental-Economic Accounting: Central Framework, White cover publication, pre-edited text subject to official editing, [Available at] http://unstats.un.org/unsd/envaccounting/White_cover.pdf Google Scholar
Fenhann, J. (2013), UNEP Risø CDM Pipeline, 1 April 2013, [Available at] http://www.CD4CDM.org.Google Scholar
Haites, E., Duan, M., and Seres, S. (2006), ‘Technology transfer by CDM projects’, Climate Policy 6(3): 327–344.Google Scholar
Huq, S. (2002), ‘Applying sustainable development criteria to CDM projects: PCF experience’, PCFPlus Report No. 10, Prototype Carbon Fund, World Bank, Washington, DC.Google Scholar
INEGI (Instituto Nacional de Estadística, Geografía e Informática) (2006), Cuenta Satélite del Subsector Informal de los Hogares 1998–2003, Instituto Nacional de Estadísticas y Geografía, Mexico.Google Scholar
INEGI (Instituto Nacional de Estadística, Geografía e Informática) (2010), Sistema de Cuentas nacionales de México: Cuentas Económicas y Ecológicas de México 2003–2007, Instituto Nacional de Estadísticas y Geografía, Mexico.Google Scholar
Jotzo, F. and Michaelowa, A. (2002), ‘Estimating the CDM market under the Marrakech Accords’, Climate Policy 2: 179–196.Google Scholar
Klepper, G. and Peterson, S. (2005), ‘Emissions trading, CDM, JI, and more: the climate strategy of the EU’, FEEM Working Paper, Fondazione Eni Enrico Mattei, Milan, p. 55.Google Scholar
Kolshus, H.H., Vevatne, J., Torvanger, A., and Aunan, K. (2001), ‘Can the Clean Development Mechanism attain both cost-effectiveness and sustainable development objectives?’, CICERO Working Paper, CICERO Senter for klimaforskning, Oslo, p. 8.Google Scholar
Mathy, S., Hourcade, J-C., and De Gouvello, C. (2001), ‘Clean Development Mechanism: leverage for development?’, Climate Policy 1: 251–268.Google Scholar
Michaelowa, A. and Jotzo, F. (2005), ‘Transaction costs, institutional rigidities and the size of the Clean Development Mechanism’, Energy Policy 33(4): 511–523.Google Scholar
Olhoff, A., Markandya, A., Halsnæs, K., and Taylor, T. (2004), CDM Sustainable Development Impacts, Copenhagen: UNEP Risø Centre.Google Scholar
Olsen, K.H. (2007), ‘The Clean Development Mechanism's contribution to sustainable development: a review of the literature’, Climatic Change 84(1): 59–73.CrossRefGoogle Scholar
Olsen, K.H. and Fenhann, J. (2008), ‘Sustainable development benefits of Clean Development Mechanism projects. A new methodology for sustainability assessment based on text analysis of the project design documents submitted for validation’, Energy Policy 36(8): 2819–2830.Google Scholar
Robinson, S. (1989), ‘Multisectoral models’, in Chenery, H. and Srinivasan, T.N. (eds), Handbook of Development Economics, Vol. II, Amsterdam: North-Holland, Chapter 18.Google Scholar
Schlup, M. (2005), The Gold Standard: Linking the CDM to Development and Poverty Reduction, Climate or Development?, Hamburg: Hamburg Institute of International Economics.Google Scholar
Scrieciu, S.S. (2007), ‘The inherent dangers of using computable general equilibrium models as a single integrated modelling framework for sustainability impact assessment. A critical note on Böhringer and Löschel (2006)’, Ecological Economics 60: 678–684.CrossRefGoogle Scholar
SENER (Secretaría de Energía) (2010), ‘El sector eléctrico mexicano’, Mexico City: SENER, [Available at] http://www.renovables.gob.mx.Google Scholar
Seres, S. and Haites, E. (2008), ‘Analysis of technology transfer in CDM projects’, Report prepared for UNFCCC Registration & Issuance Unit CDM/SDM, Montreal.Google Scholar
Subbarao, S. and Lloyd, B. (2011), ‘Can the Clean Development Mechanism (CDM) deliver?’, Energy Policy 39(3): 1600–1611.Google Scholar
Sutter, C. (2003), Sustainability Check-Up for CDM Projects. How to Assess the Sustainability of International Projects Under the Kyoto Protocol, Berlin: Wissenschaftlicher Verlag Berlin (WVB).Google Scholar
Sutter, C., and Parreño, J.C. (2007), ‘Does the current Clean Development Mechanism (CDM) deliver its sustainable development claim? An analysis of officially registered CDM projects’, Climatic Change 84(1): 75–90.Google Scholar
UNFCCC (2012), Benefits of the Clean Development Mechanism 2012, Bonn: United Nations Climate Change Secretariat, [Available at] http://cdm.unfccc.int.Google Scholar
Nations, United (2000), Integrated Environmental and Economic Accounting: An Operational Manual, Handbook of National Accounting, Studies in Methods Series F, No. 78, ST/ESA/STAT/SER.F/78, New York: United Nations.Google Scholar