Effects of the CDM on Poverty Eradication and Global Climate Protection

30 Pages Posted: 9 Jan 2009

See all articles by Dirk T. G. Rübbelke

Dirk T. G. Rübbelke

Technische Universität Bergakademie Freiberg

Nathan Rive

Center for International Climate and Environmental Research (CICERO)

Date Written: December 10, 2008

Abstract

In an impure public good model we analyze the effects of CDM transfers on poverty as well as on the global climate protection level. We construct an analytical model of a developing and an industrialized region, both of which independently seek to maximize their utility - a function of private consumption, domestic air quality, and global climate protection. They do so by distributing their finite expenditures across (1) the aggregate consumption good, (2) end-of-pipe pollution control technologies, and (3) greenhouse gas abatement. Based on our analytical findings, we develop two sets of simulations for China in which we vary the rate of the CDM transfer. The simulations differ by the assumption of China's domestic air quality policy - the first assumes a technology-standards policy which fixes a level of end-of-pipe SO2 control, whereas the second assumes a technology-neutral policy which simply fixes the level of total SO2 emissions.

Keywords: Ancillary Benefits, CDM, Climate Policy, Impure Public Goods, Transfers, Abatement Technology

JEL Classification: Q54, H23, H41, O33

Suggested Citation

Rübbelke, Dirk T. G. and Rive, Nathan, Effects of the CDM on Poverty Eradication and Global Climate Protection (December 10, 2008). FEEM Working Paper No. 93.2008. Available at SSRN: https://ssrn.com/abstract=1314207 or http://dx.doi.org/10.2139/ssrn.1314207

Dirk T. G. Rübbelke (Contact Author)

Technische Universität Bergakademie Freiberg ( email )

Freiberg, 09599
Germany

Nathan Rive

Center for International Climate and Environmental Research (CICERO) ( email )

P.O. Box 1129 Blindern
Oslo, N-0317
United States

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