The correlated factors of the uneven performances of the CDM host countries

Abstract

The Kyoto Protocols Clean Development Mechanism (CDM) has experienced a rapid growth. Up to 2010, 2763 projects have been registered, standing for about 433 million ton CO2 equivalent (CO2-eq.) of annual carbon credits. However, the performances of CDM host countries are remarkably unbalanced. Previous literature suggested that economic and investment conditions, energy intensity, energy structure, the share of annual carbon credits from high global warming potential (GWP) green house gas (GHG), capacity and institutional buildings of domestic CDM governance can play important roles in promoting CDM. This quantitative analysis shows that domestic economic and investment conditions are the most decisive factors determining the performance of the CDM host countries. Additionally, the influence of carbon intensity of energy consumption is relatively modest, and energy intensity of GDP as well as the share of annual carbon credits from high GWP GHG is less significant. Moreover, several leading CDM countries are not as successful as they seem to be, when the influences of their vast territories, distinguished economic and investment conditions are excluded. Therefore, to simply transplant the CDM governances of these countries can hardly guarantee that other countries will boost their carbon credit outputs. © 2012 IOP Publishing Ltd.