TY - JOUR
T1 - The effect of Peru's CDM investments on households’ welfare: An econometric approach
AU - Pécastaing, Nicolas
AU - Dávalos, Jorge
AU - Inga, Andy
PY - 2018/12/1
Y1 - 2018/12/1
N2 - The Clean Development Mechanism (CDM) under the Kyoto Protocol has two main objectives: Reducing emissions of greenhouse gases (GHGs) and contributing to sustainable development (SD) in developing countries. The empirical evidence indicates that the first goal has been fulfilled; however, the literature mostly provides ex-ante evidence regarding the second goal. This paper contributes to the literature by assessing the ex-post quantitative effect that CDM projects have had on SD (employment and monetary welfare) in Peru, a country ranked among the most important CDM investment host countries worldwide. The econometric model estimates the direct and indirect effects of the CDM projects’ investments on Peruvian households’ monetary welfare for 2011–2015. Our results suggest that CDM investments had a slight effect on household consumption expenditure and had no effect neither on employment nor in poverty alleviation. Our findings suggest the need to strengthen CDM's institutional framework by identifying key development definitions and indicators.
AB - The Clean Development Mechanism (CDM) under the Kyoto Protocol has two main objectives: Reducing emissions of greenhouse gases (GHGs) and contributing to sustainable development (SD) in developing countries. The empirical evidence indicates that the first goal has been fulfilled; however, the literature mostly provides ex-ante evidence regarding the second goal. This paper contributes to the literature by assessing the ex-post quantitative effect that CDM projects have had on SD (employment and monetary welfare) in Peru, a country ranked among the most important CDM investment host countries worldwide. The econometric model estimates the direct and indirect effects of the CDM projects’ investments on Peruvian households’ monetary welfare for 2011–2015. Our results suggest that CDM investments had a slight effect on household consumption expenditure and had no effect neither on employment nor in poverty alleviation. Our findings suggest the need to strengthen CDM's institutional framework by identifying key development definitions and indicators.
KW - Clean Development Mechanism (CDM)
KW - Climate change
KW - Panel econometrics
KW - Poverty
KW - Sustainable development
KW - Clean Development Mechanism (CDM)
KW - Climate change
KW - Panel econometrics
KW - Poverty
KW - Sustainable development
UR - https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85052899059&origin=inward
UR - https://www.scopus.com/inward/citedby.uri?partnerID=HzOxMe3b&scp=85052899059&origin=inward
U2 - 10.1016/j.enpol.2018.08.047
DO - 10.1016/j.enpol.2018.08.047
M3 - Article in a journal
SN - 0301-4215
VL - 123
SP - 198
EP - 207
JO - Energy Policy
JF - Energy Policy
ER -
