The Clean Development Mechanism and Technology Transfer to China

45 Pages Posted: 10 Oct 2012

Date Written: September 18, 2012


In this study we analyse the role of the Clean Development Mechanism (CDM) established by the Kyoto Protocol in channelling foreign technology to China. The descriptive analysis investigates the sources and the determinants of foreign technology transfer based on the examination of 1,355 registered projects. As key features, we show the prominence of German firms as technology providers and the absence of a strong relationship between technology suppliers and credit buyers. We also discuss the role of leading Chinese and foreign consultants and of major credit buyers. The econometric analysis finds that project size and cost, project location, credit buyers’ and consultants’ characteristics, as well as technology diffusion are all relevant factors in determining the probability of having a foreign supplier of technology in the respective project.

Keywords: technology transfer, CDM, climate change, China, FDI

JEL Classification: F23, Q55, Q56

Suggested Citation

Marconi, Daniela and Sanna Randaccio, Francesca, The Clean Development Mechanism and Technology Transfer to China (September 18, 2012). Bank of Italy Occasional Paper No. 129, Available at SSRN: or

Daniela Marconi (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184

Francesca Sanna Randaccio

Sapienza University of Rome ( email )

via del Castro Laurenziano, 9
Rome, RM 00161
+39 06 4829 9228 (Phone)
+39 06 4829 9218 (Fax)

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