Title

Links Between European Emissions Trading and CDM Credits for Renewable Energy and Energy Efficiency Projects

Document Type

Working Paper

Date

2006

Keywords

sunstainable development, emissions trading, Kyoto Protocol, Clean Development Mechanism, European Union, Climate Change, Market-Based Mechanisms, Instrument choice, renewable energy

Language

English

Disciplines

Economic Policy | Environmental Policy

Description/Abstract

This paper asks whether the European Union's (EU) Emissions Trading Scheme has encouraged investment in renewable energy and energy efficiency projects in developing countries. So far, it has produced very little investment in either in spite of the EU's decision to allow credits for projects undertaken in developing countries through the Kyoto Protocol's Clean Development Mechanism. This may reflect the relatively high cost of renewable energy and the awkwardness of assessing the additionality of energy efficiency projects. While the literature generally associates emissions trading with innovation, emissions trading does not encourage innovation with high short term costs, even when such innovation has strong positive spillover effects.

Source

Metadata from SSRN

This document is currently not available here.

Share

COinS