Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/grz/wpaper/2017-05.html
   My bibliography  Save this paper

Do Clean Development Mechanism projects generate local employment? Testing for sectoral effects across Brazilian municipalities

Author

Listed:
  • Yadira Mori Clement

    (University of Graz)

  • Birgit Bednar-Friedl

    (University of Innsbruck)

Abstract
Clean Development Mechanism (CDM) investments have the two-fold objective of mitigating greenhouse gas emissions and contributing to sustainable development. But while the contribution to mitigation has been analysed extensively in the literature, the impact on development has barely been quantified empirically. This paper intends to address this latter gap by investigating the impact of different types of CDM investments on local employment generation. A dynamic panel regression model for the period 2004-2014 across Brazilian municipalities supports that some CDM projects have not only stimulated job creation beyond the renewable energy sector, but also had a contractive effect in some economic sectors. We find moreover a clear difference by project type: For waste handling and methane avoidance projects, overall employment increases while no such effect emerges for hydro projects. However, these job effects are mainly transitory, i.e. in the first or second year after the project's registration; the expansion effect can be explained as a result of local employment demands generated during the project's construction and operation phases. The lack of durability or the temporary effects in employment of these projects might question the contribution of their benefits to local sustainable development.

Suggested Citation

  • Yadira Mori Clement & Birgit Bednar-Friedl, 2017. "Do Clean Development Mechanism projects generate local employment? Testing for sectoral effects across Brazilian municipalities," Graz Economics Papers 2017-05, University of Graz, Department of Economics.
    • Handle: RePEc:grz:wpaper:2017-05
    as

    Download full text from publisher

    File URL: https://unipub.uni-graz.at/obvugrveroeff/download/pdf/9556768?originalFilename=true
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. repec:grz:wpaper:2015-05 is not listed on IDEAS
    2. M Ayhan Kose & Eswar Prasad & Kenneth Rogoff & Shang-Jin Wei, 2009. "Financial Globalization: A Reappraisal," IMF Staff Papers, Palgrave Macmillan, vol. 56(1), pages 8-62, April.
    3. Aaditya Mattoo & Arvind Subramanian & Dominique van der Mensbrugghe & Jianwu He, 2012. "Can Global De-Carbonization Inhibit Developing Country Industrialization?," The World Bank Economic Review, World Bank, vol. 26(2), pages 296-319.
    4. Aldy, Joseph Edgar, 2011. "Promoting Clean Energy in the American Power Sector," Scholarly Articles 4901643, Harvard Kennedy School of Government.
    5. Komor, Paul & Bazilian, Morgan, 2005. "Renewable energy policy goals, programs, and technologies," Energy Policy, Elsevier, vol. 33(14), pages 1873-1881, September.
    6. Stephen R. Bond, 2002. "Dynamic panel data models: a guide to micro data methods and practice," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 1(2), pages 141-162, August.
    7. Nils May & Øivind A. Nilsen, 2019. "The Local Economic Impact of Wind Power Deployment," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 75(1), pages 56-92.
    8. Koch, Nicolas & Fuss, Sabine & Grosjean, Godefroy & Edenhofer, Ottmar, 2014. "Causes of the EU ETS price drop: Recession, CDM, renewable policies or a bit of everything?—New evidence," Energy Policy, Elsevier, vol. 73(C), pages 676-685.
    9. Dhakal, Shobhakar & Raut, Anil K., 2010. "Potential and bottlenecks of the carbon market: The case of a developing country, Nepal," Energy Policy, Elsevier, vol. 38(7), pages 3781-3789, July.
    10. Strand, Jon, 2009. ""Revenue management"effects related to financial flows generated by climate policy," Policy Research Working Paper Series 5053, The World Bank.
    11. Martinez, Candace A. & Bowen, J.D., 2012. "The Clean Development Mechanism in the Solid Waste Management Sector: Sustainable for Whom?," Ecological Economics, Elsevier, vol. 82(C), pages 123-125.
    12. repec:grz:wpaper:2015-03 is not listed on IDEAS
    13. Wang, Can & Zhang, Weishi & Cai, Wenjia & Xie, Xi, 2013. "Employment impacts of CDM projects in China's power sector," Energy Policy, Elsevier, vol. 59(C), pages 481-491.
    14. Brown, Jason P. & Pender, John & Wiser, Ryan & Lantz, Eric & Hoen, Ben, 2012. "Ex post analysis of economic impacts from wind power development in U.S. counties," Energy Economics, Elsevier, vol. 34(6), pages 1743-1754.
    15. Wendner, Ronald, 2015. "Do positional preferences for wealth and consumption cause inter-temporal distortions?," MPRA Paper 64086, University Library of Munich, Germany.
    16. Ariel Dinar & Donald F Larson & Shaikh M Rahman, 2013. "The Clean Development Mechanism (CDM):An Early History of Unanticipated Outcomes," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 8437, August.
    17. repec:grz:wpaper:2015-06 is not listed on IDEAS
    18. Muller, Adrian, 2007. "How to make the clean development mechanism sustainable--The potential of rent extraction," Energy Policy, Elsevier, vol. 35(6), pages 3203-3212, June.
    19. Olsen, Karen Holm & Fenhann, Jørgen, 2008. "Sustainable development benefits of clean development mechanism projects: A new methodology for sustainability assessment based on text analysis of the project design documents submitted for validatio," Energy Policy, Elsevier, vol. 36(8), pages 2773-2784, August.
    20. Stephen Bond, 2002. "Dynamic panel data models: a guide to microdata methods and practice," CeMMAP working papers CWP09/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    21. repec:grz:wpaper:2015-01 is not listed on IDEAS
    22. Hillebrand, Bernhard & Buttermann, Hans Georg & Behringer, Jean Marc & Bleuel, Michaela, 2006. "The expansion of renewable energies and employment effects in Germany," Energy Policy, Elsevier, vol. 34(18), pages 3484-3494, December.
    23. Subbarao, Srikanth & Lloyd, Bob, 2011. "Can the Clean Development Mechanism (CDM) deliver?," Energy Policy, Elsevier, vol. 39(3), pages 1600-1611, March.
    24. repec:grz:wpaper:2015-04 is not listed on IDEAS
    25. Reddy, V. Ratna & Uitto, Juha I. & Frans, Dirk R. & Matin, Nilufar, 2006. "Achieving global environmental benefits through local development of clean energy? The case of small hilly hydel in India," Energy Policy, Elsevier, vol. 34(18), pages 4069-4080, December.
    26. Jingjing He & Yongfu Huang & Finn Tarp, 2014. "Has the Clean Development Mechanism assisted sustainable development?," Natural Resources Forum, Blackwell Publishing, vol. 0(4), pages 248-260, November.
    27. Dechezleprêtre, Antoine & Glachant, Matthieu & Ménière, Yann, 2009. "Technology transfer by CDM projects: A comparison of Brazil, China, India and Mexico," Energy Policy, Elsevier, vol. 37(2), pages 703-711, February.
    28. Nussbaumer, Patrick, 2009. "On the contribution of labelled Certified Emission Reductions to sustainable development: A multi-criteria evaluation of CDM projects," Energy Policy, Elsevier, vol. 37(1), pages 91-101, January.
    29. Yu, Fei & Grady, Patrick & Knipp, Robert, 2012. "Regulatory Stringency in Issuing Certified Emission Reductions and Price Effects in Secondary Markets," MPRA Paper 50184, University Library of Munich, Germany.
    30. Johannes Alexeew & Linda Bergset & Kristin Meyer & Juliane Petersen & Lambert Schneider & Charlotte Unger, 2010. "An analysis of the relationship between the additionality of CDM projects and their contribution to sustainable development," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 10(3), pages 233-248, September.
    31. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    32. del Río, Pablo & Burguillo, Mercedes, 2008. "Assessing the impact of renewable energy deployment on local sustainability: Towards a theoretical framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(5), pages 1325-1344, June.
    33. Seres, Stephen & Haites, Erik & Murphy, Kevin, 2009. "Analysis of technology transfer in CDM projects: An update," Energy Policy, Elsevier, vol. 37(11), pages 4919-4926, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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.
    3. Jingjing He & Yongfu Huang & Finn Tarp, 2014. "Has the Clean Development Mechanism assisted sustainable development?," Natural Resources Forum, Blackwell Publishing, vol. 38(4), pages 248-260, November.
    4. Uddin, Noim & Blommerde, Mascha & Taplin, Ros & Laurence, David, 2015. "Sustainable development outcomes of coal mine methane clean development mechanism Projects in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 1-9.
    5. Pécastaing, Nicolas & Dávalos, Jorge & Inga, Andy, 2018. "The effect of Peru's CDM investments on households’ welfare: An econometric approach," Energy Policy, Elsevier, vol. 123(C), pages 198-207.
    6. Pécastaing, Nicolas, 2013. "L’impact du mécanisme de développement propre (MDP) sur le développement « durable » : le cas du Pérou," L'Actualité Economique, Société Canadienne de Science Economique, vol. 89(1), pages 39-56, Mars.
    7. Beck, Thorsten & Poelhekke, Steven, 2023. "Follow the money: Does the financial sector intermediate natural resource windfalls?," Journal of International Money and Finance, Elsevier, vol. 130(C).
    8. Lema, Adrian & Lema, Rasmus, 2016. "Low-carbon innovation and technology transfer in latecomer countries: Insights from solar PV in the clean development mechanism," Technological Forecasting and Social Change, Elsevier, vol. 104(C), pages 223-236.
    9. Vasa, Alexander & Neuhoff, Karsten, 2011. "The Role of CDM Post-2012," EconStor Research Reports 65871, ZBW - Leibniz Information Centre for Economics.
    10. Michael Effah Asamoah & Imhotep Paul Alagidede & Frank Adu, 2021. "Private Capital Flows, Real Sector Growth and Institutional Quality in Africa," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(1), pages 171-207, January.
    11. Drupp, Moritz A., 2011. "Does the Gold Standard label hold its promise in delivering higher Sustainable Development benefits? A multi-criteria comparison of CDM projects," Energy Policy, Elsevier, vol. 39(3), pages 1213-1227, March.
    12. Du, Yimeng & Takeuchi, Kenji, 2019. "Can climate mitigation help the poor? Measuring impacts of the CDM in rural China," Journal of Environmental Economics and Management, Elsevier, vol. 95(C), pages 178-197.
    13. Gaies, Brahim & Goutte, Stéphane & Guesmi, Khaled, 2020. "Does financial globalization still spur growth in emerging and developing countries? Considering exchange rates," Research in International Business and Finance, Elsevier, vol. 52(C).
    14. Theresa Stahlke, 2020. "The impact of the Clean Development Mechanism on developing countries’ commitment to mitigate climate change and its implications for the future," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 25(1), pages 107-125, January.
    15. Topcu, Mert & Tugcu, Can Tansel, 2020. "The impact of renewable energy consumption on income inequality: Evidence from developed countries," Renewable Energy, Elsevier, vol. 151(C), pages 1134-1140.
    16. Brahim Gaies & Stéphane Goutte & Khaled Guesmi, 2019. "Does Financial Globalization Still Spur Growth In Developing Countries? Considering Exchange Rate Volatility," Working Papers halshs-02175361, HAL.
    17. Eicher, Theo S. & Schreiber, Till, 2010. "Structural policies and growth: Time series evidence from a natural experiment," Journal of Development Economics, Elsevier, vol. 91(1), pages 169-179, January.
    18. Manthos D. Delis & Sotirios Kokas & Steven Ongena, 2016. "Foreign Ownership and Market Power in Banking: Evidence from a World Sample," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 48(2-3), pages 449-483, March.
    19. Jessica M. Mc Lay & Roy Lay-Yee & Barry J. Milne & Peter Davis, 2015. "Regression-Style Models for Parameter Estimation in Dynamic Microsimulation: An Empirical Performance Assessment," International Journal of Microsimulation, International Microsimulation Association, vol. 8(2), pages 83-127.
    20. Huy Quang Doan, 2019. "Trade, Institutional Quality and Income: Empirical Evidence for Sub-Saharan Africa," Economies, MDPI, vol. 7(2), pages 1-23, May.

    More about this item

    Keywords

    Employment generation; Clean development mechanism; Industry; Regional development; Municipality level; Brazil; Dynamic panel model;
    All these keywords.

    JEL classification:

    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:grz:wpaper:2017-05. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stefan Borsky (email available below). General contact details of provider: https://edirc.repec.org/data/vgrazat.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.