Will Markets Direct Investments under the Kyoto Protocol?
Under the Kyoto Protocol, countries can meet treaty obligations by investing in projects that reduce or sequester greenhouse gases elsewhere. Prior to ratification, treaty participants agreed to launch country-based pilot projects, referred to coll...
| Main Authors: | , |
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| Language: | English |
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World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2007/02/7367692/markets-direct-investments-under-kyoto-protocol http://hdl.handle.net/10986/7143 |
| Summary: | Under the Kyoto Protocol, countries can
meet treaty obligations by investing in projects that reduce
or sequester greenhouse gases elsewhere. Prior to
ratification, treaty participants agreed to launch
country-based pilot projects, referred to collectively as
Activities Implemented Jointly (AIJ), to test novel aspects
of the project-related provisions. Relying on a 10-year
history of projects, the authors investigate the
determinants of AIJ investment. Their findings suggest that
national political objectives and possibly deeper cultural
ties influenced project selection. This characterization
differs from the market-based assumptions that underlie
well-known estimates of cost-savings related to the
Protocol's flexibility mechanisms. The authors conclude
that if approaches developed under the AIJ programs to
approve projects are retained, benefits from Kyoto's
flexibility provisions will be less than those widely anticipated. |
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