Economic impact of CDM implementation through alternate energy resource substitution

Abstract

Since the Kyoto protocol agreement, Clean Development Mechanism (CDM) has garnered large emphasis in terms of certified emission reductions (CER) not only amidst the global carbon market but also in India. This paper attempts to assess the impact of CDM towards sustainable development particularly in rural domestic utility sector that mainly includes lighting and cooking applications, with electricity as the source of energy. A detailed survey has undertaken in the state of Kerala, in southern part of India to study the rural domestic energy consumption pattern. The data collected was analyzed that throws insight into the interrelationships of the various parameters that influence domestic utility sector pertaining to energy consumption by using electricity as the source of energy. The interrelationships between the different parameters were modeled that optimizes the contribution of electricity on domestic utility sector. The results were used to estimate the feasible extent of CO2 emission reduction through use of electricity as the energy resources, vis-à-vis its economic viability through cost effectiveness. The analysis also provides a platform for implementing CDM projects in the sector and related prospects with respects to the Indian scenario.