Climatic Change

, Volume 118, Issue 3, pp 521-536

First online:

Do we know each other? Bilateral ties and the location of clean development mechanism projects

  • Nives DolšakAffiliated withInterdisciplinary Arts and Sciences; and School of Marine and Environmental Affairs, University of Washington Email author 
  • , Emily Bowerman CrandallAffiliated withInterdisciplinary Arts and Sciences, University of Washington Bothell

Rent the article at a discount

Rent now

* Final gross prices may vary according to local VAT.

Get Access


This paper examines how bilateral ties between developed (home) countries and developing (host) countries influence the location of Clean Development Mechanism projects (CDMs). With the home-host country pair as the unit of analysis (2,058 country-pairs), we employ a logistic regression model to analyze decisions of home countries in selecting the location for their CDMs. We are most interested in examining how home countries’ familiarity with the host country influences CDM location decisions. The familiarity factors are: (1) colonial history; (2) bilateral trade; and (3) bilateral aid. Using a binary logistical model, we find that that bilateral familiarity factors strongly influence CDM location decisions. Further, with respect to host country characteristics, we find that total carbon dioxide emissions and UNFCCC specific domestic institutions influence CDM location decisions, but not general investment institutions or high carbon intensity of host country economies.