Africa and the clean development mechanism

What determines project investments?

authored by

Dirk Röttgers, Ulrike Grote

Abstract

African countries have hardly used the opportunity to implement CDM projects and thereby turn environmental problems into business and development opportunities. This paper finds out why by identifying factors of CDM partnerships. Our gravity model analyzes flows of Certified Emission Reductions (CERs) between host and financier countries. Findings show that foreign direct investments, official development assistance, and trade have a positive influence on project attraction. A distinction between project initiation and CER flow size shows that the specific shortcomings of African countries lie with the initial attraction of investors. This points to an inadequacy in the initial process of project generation.

Organisation(s)

Institute of Environmental Economics and World Trade

Type

Article

Journal

World development

Volume

62

Pages

201-212

No. of pages

12

ISSN

0305-750X

Publication date

10.2014

Publication status

Published

Peer reviewed

Yes

ASJC Scopus subject areas

Geography, Planning and Development, Development, Sociology and Political Science, Economics and Econometrics

Sustainable Development Goals

SDG 10 - Reduced Inequalities

Electronic version(s)

https://doi.org/10.1016/j.worlddev.2014.05.009 (Access: Closed)