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Do Clean Development Mechanism Projects Generate Local Employment? Testing for Sectoral Effects across Brazilian Municipalities

Bibliographic Data

ID12185191
AuthorsYadira Mori-Clement (0000-0001-6558-7322, University of Graz, corresponding author), Birgit Bednar‐Friedl (0000-0002-8348-4615, University of Graz)
Year2018
Volume157
Pages47-60
Publication date2018-11-16
Open AccessYes
TypeARTICLE
VenueEcological Economics (JOURNAL)
Journal identifiersISSN: 0921-8009 • E-ISSN: 1873-6106
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.ecolecon.2018.10.011
OpenAlexW2901217165
LanguageEN
Citations received2
References cited22

Clean Development Mechanism (CDM) projects have a two-fold objective: reducing greenhouse gas emissions and contributing to sustainable development. But while the contribution to mitigation has been analyzed extensively in the literature, the impact on development has seldomly been quantified empirically. This paper addresses this gap by investigating the impacts of CDM projects on local employment. We use a dynamic panel regression model across Brazilian municipalities for the period 20042014 to estimate cross-sectoral employment effects of two project types: hydro projects and methane avoidance projects. We find that CDM projects have mixed effects on sectoral employment. Municipalities with hydro projects show a positive impact on commerce and a negative on agricultural employment. In a similar way, these effects have also been identified in municipalities with methane avoidance projects, as well as positive effects in the service and the construction sector. Regardless of project type, the sectoral employment effects are found to be small and transitory, i.e. these took place immediately or within the first, second or third year after the registration of the project, corresponding to the construction phase and early years of operation. Revenues from Certified Emission Reductions (CER) seem to have no or a very small positive impact on sectoral employment, and no significant impact is found for the CER price fall in 2012

Agriculture · Business · Clean Development Mechanism · Economic growth · Economics · Geography · Greenhouse gas · Natural resource economics · Panel data · Political science · Revenue · Sustainable development · Energy, Environment, Economic Growth · Environmental Impact and Sustainability · Fiscal Policy and Economic Growth · Ecology · Finance

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  • Atuação dos projetos de mecanismo de desenvolvimento limpo para o desenvolvimento sustentável no Brasil

    Open Access•Elaine Aparecida Fernandes, GUSTAVO BARROS LEITE•Brazilian Journal of Political…•2021

  • Does the current Clean Development Mechanism (CDM) deliver its sustainable development claim? An analysis of officially registered CDM projects

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    Open Access•Stephen R Bond•Portuguese Economic Journal•2002

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    Manuel Arellano, Stephen Bond•The Review of Economic Studies•1991

  • The Clean Development Mechanism in the Solid Waste Management Sector

    Open Access•Candace A Martinez, James D Bowen•Ecological Economics•2012

  • Impacts of Hydropower Development on Rural Livelihood Sustainability in Sikkim, India

    Open Access•Thomas Chandy, Rodney J Keenan et al.•Mountain Research and Development•2012

  • An analysis of the relationship between the additionality of CDM projects and their contribution to sustainable development

    Open Access•Johannes Alexeew, Linda Bergset et al.•International Environmental…•2010

  • Technology transfer in the clean development mechanism

    Open Access•Adrian Lema, Rasmus Lema•Global Environmental Change•2012

  • Impacts of CDM projects on sustainable development

    Open Access•Yadira Mori-Clement•World Development•2018

Citations per year0.4
Citation span2021 - 2022 (2)
Highly citedNo

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