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Impacts of CDM projects on sustainable development: Improving living standards across Brazilian municipalities?

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  • Mori-Clement, Yadira
Abstract
The goal of the Clean Development Mechanism (CDM) is both emission reduction and sustainable development, but while emission reductions generate revenues for the project developer, no such benefit results from the achievement of sustainable development. The objective of this research is therefore to analyze to which extent CDM investments have led to sustainable development benefits, and whether there is a difference in these effects between renewable energy and waste handling and disposal projects. Complementary to existing studies, which are based on potential effects reported ex-ante by project developers, this paper aims at quantifying impacts of CDM projects on sustainable development based on empirical data. Using data for years 2000 (pre-CDM) and 2010 (post-CDM) for Brazilian municipalities, this paper combines difference-in-differences assessment with matching techniques to identify the effect of CDM investments on development and poverty indicators by distinguishing for four project’s types: hydro, biomass energy, landfill gas and methane avoidance. Results show that CDM project types have stimulated local income and labor opportunities but only hydro projects have contributed to reduce poverty at the municipal level for the period analyzed.

Suggested Citation

  • Mori-Clement, Yadira, 2019. "Impacts of CDM projects on sustainable development: Improving living standards across Brazilian municipalities?," World Development, Elsevier, vol. 113(C), pages 222-236.
    • Handle: RePEc:eee:wdevel:v:113:y:2019:i:c:p:222-236
    DOI: 10.1016/j.worlddev.2018.06.014
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    Cited by:

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    5. Jaraitė, Jūratė & Kurtyka, Oliwia & Ollivier, Hélène, 2022. "Take a ride on the (not so) green side: How do CDM projects affect Indian manufacturing firms’ environmental performance?," Journal of Environmental Economics and Management, Elsevier, vol. 114(C).
    6. David Grover & Swaroop Rao, 2020. "Inequality, unemployment, and poverty impacts of mitigation investment: evidence from the CDM in Brazil and implications for a post-2020 mechanism," Climate Policy, Taylor & Francis Journals, vol. 20(5), pages 609-625, May.
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    10. Mori-Clement, Yadira & Bednar-Friedl, Birgit, 2019. "Do Clean Development Mechanism Projects Generate Local Employment? Testing for Sectoral Effects across Brazilian Municipalities," Ecological Economics, Elsevier, vol. 157(C), pages 47-60.
    11. Iddrisu, Mubarak & Aidoo, Robert & Abawiera Wongnaa, Camillus, 2020. "Participation in UTZ-RA voluntary cocoa certification scheme and its impact on smallholder welfare: Evidence from Ghana," World Development Perspectives, Elsevier, vol. 20(C).

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    More about this item

    Keywords

    Clean development mechanism; Sustainable development; Renewable energy and waste handling and disposal projects; Brazil; Development and poverty indicators; Difference-in-differences and matching techniques;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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