ECN publication
The difference the CDM makes. An analysis of the impact of the clean development mechanism on technological change in non-Annex I countries
Putten, van, Joost
Published by: Publication date:
ECN Policy Studies 27-10-2009
ECN report number: Document type:
ECN-O--09-030 Other
Number of pages: Full text:
115 Download PDF  

In the struggle to fight global warming development and diffusion of low carbon technology as a means of achieving technological change (TC) are crucial. The Clean Development Mecha-nism (CDM) has grown in recent years and currently involves over 4500 projects in non-Annex I (developing) countries. As such it has become an important global instrument to influence technological change. This study focuses on measuring the impact of the CDM on TC in non-Annex I countries. It includes a framework on TC, a causal model illustrating the way CDM in-fluences TC in non-Annex I countries and it includes a newly developed method to measure and study the impact of CDM on TC. This method was applied to case studies in three Indian sec-tors: electricity, iron and steel sector and the industry producing hydro fluorocarbons. This study has made clear that CDM is having an impact on technology diffusion and, technology devel-opment. It concludes that the impact of CDM on technology diffusion can be substantial but that it differs greatly between countries and sectors. It also concludes that CDM projects can lead to learning, R&D, spillovers and economies of scale and thus contribute to technology develop-ment. It was also found that the impact of CDM on the national innovation system is complex and not well understood.

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