Skip to main content
SpringerLink
Log in

CDMs’ effect on environmentally sensitive productivity: evidence from Chinese provinces

  • Original Paper
  • Published:
Letters in Spatial and Resource Sciences Aims and scope Submit manuscript

Abstract

Reducing emissions and improving sustainable development are two key goals of Clean development mechanism (CDM) projects. This study employs the global Malmquist-Luenberger index to estimate environmentally sensitive productivity from 2005 to 2013 at the Chinese provincial level and investigates the impact of CDM projects on sustainable development via panel quantile regressions. The findings reveal the CDM projects significantly stimulate environmentally sensitive productivity growth while developed provinces enjoy a greater promotion in growth. This effect becomes weaker as the environmentally sensitive productivity is enhanced. CDM projects with new constructions rather than refurbished existed constructions exhibit a strong promotion effect. By considering the investment and operating costs, environmentally friendly investment policies, with a focus on cost reduction, can attract technology transfer and promote the role of CDM projects. Furthermore, carbon emission reduction requires different incentives via the optimization of different CDM project types across regions.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

Notes

  1. We here omit \(g = \left( {g_{y} ,g_{b} } \right)\) in the DDFs to save space. That is \(D\left( {x,y,b} \right) \equiv D\left( {x,y,b;g_{y} ,g_{b} } \right)\).

  2. Source: CEIC Database, https://www.ceicdata.com/en.

  3. Source: China Data Online Database, https://www.china-data-online.com/.

References

  • Alaimo, L.S., Maggino, F.: Sustainable development goals indicators at territorial level: Conceptual and methodological issues-The Italian perspective. Soc. Indic. Res. 147(2), 383–419 (2020)

    Article  Google Scholar 

  • Binder, M., Coad, A.: From average Joe’s happiness to Miserable Jane and Cheerful John: using quantile regressions to analyze the full subjective well-being distribution. J. Econ. Behav. Organ. 79(3), 275–290 (2011)

    Article  Google Scholar 

  • Brown, K., Adger, W.N., Boyd, E., Corbera-Elizalde, E., Shackley, S.: How do CDM projects contribute to sustainable development? Norwich: Tyndall Centre for Climate Change Research, vol. 16 (2004)

  • Bumpus, A.G., Cole, J.C.: How can the current CDM deliver sustainable development? Wiley Interdiscip. Rev. Climate Change 1(4), 541–547 (2010)

    Article  Google Scholar 

  • Castro, P.: Does the CDM discourage emission reduction targets in advanced developing countries? Climate Policy 12(2), 198–218 (2012)

    Article  Google Scholar 

  • Chen, S., Golley, J.: ‘Green’ productivity growth in China’s industrial economy. Energy Econ. 44, 89–98 (2014)

    Article  Google Scholar 

  • Choi, Y., Oh, D.H., Zhang, N.: Environmentally sensitive productivity growth and its decompositions in China: a metafrontier Malmquist-Luenberger productivity index approach. Empir. Econ. 49(3), 1017–1043 (2015)

    Article  Google Scholar 

  • Chung, Y.H., Färe, R., Grosskopf, S.: Productivity and undesirable outputs: a directional distance function approach. J. Environ. Manage. 51(3), 229–240 (1997)

    Article  Google Scholar 

  • Comin, D.: Total Factor Productivity Economic growth, pp. 260–263. Palgrave Macmillan, London (2010)

    Google Scholar 

  • Cormier, A., Bellassen, V.: The risks of CDM projects: How did only 30% of expected credits come through? Energy Policy 54, 173–183 (2013)

    Article  Google Scholar 

  • Cosbey, A., Parry, J., Browne, J., Babu, Y.D., Bhandari, P., Drexhage, J., Murphy, D.: Realizing the development dividend: Making the CDM work for developing countries. Int. Inst. Sustain. Dev. 72 (2005)

  • Das, K.: Technology Transfer under the Clean Development Mechanism: an empirical study of 1000 CDM projects. Available at: SSRN 1887727 (2011)

  • De Coninck, H., Haake, F., Van Der Linden, N.: Technology transfer in the clean development mechanism. Climate Policy 7(5), 444–456 (2007)

    Article  Google Scholar 

  • Dechezleprêtre, A., Glachant, M., Ménière, Y.: The clean development mechanism and the international diffusion of technologies: An empirical study. Energy Policy 36(4), 1273–1283 (2008)

    Article  Google Scholar 

  • Dechezleprêtre, A., Glachant, M., Ménière, Y.: Technology transfer by CDM projects: A comparison of Brazil, China, India and Mexico. Energy Policy 37(2), 703–711 (2009)

    Article  Google Scholar 

  • Drupp, M.A.: Does the Gold Standard label hold its promise in delivering higher Sustainable Development benefits? A multi-criteria comparison of CDM projects. Energy Policy 39(3), 1213–1227 (2011)

    Article  Google Scholar 

  • Flues, F.: Who hosts the Clean Development Mechanism? Determinants of CDM project distribution" CIS Working Paper No. 53, Available at: SSRN: https://ssrn.com/abstract=1578883 (2010)

  • Fan, M., et al.: Combining global Malmquist-Luenberger index and generalized method of moments to investigate industrial total factor CO2 emission performance: A case of Shanghai (China). Energy Policy 79, 189–201 (2015)

    Article  Google Scholar 

  • Färe, R., Grosskopf, S., Lindgren, B., Roos, P.: Productivity changes in Swedish pharamacies 1980–1989: A non-parametric Malmquist approach. J. Prod. Anal. 3(1), 85–101 (1992)

    Article  Google Scholar 

  • Feng, S.: The Measurement of Capital Stock of China. In: E3S Web of Conferences. vol. 214, p. 01037, EDP Sciences (2020)

  • Gandenberger, C., Bodenheimer, M., Schleich, J., Orzanna, R., Macht, L.: Factors driving international technology transfer: Empirical insights from a CDM project survey. Climate Policy 16(8), 1065–1084 (2016)

    Article  Google Scholar 

  • Guillén-Royo, M.: Sustainable consumption and wellbeing: Does on-line shopping matter? J. Clean. Prod. 229, 1112–1124 (2019)

    Article  Google Scholar 

  • Haites, E., et al.: Technology transfer by CDM projects. Climate Policy 6(3), 327–344 (2006)

    Article  Google Scholar 

  • Hu, J.-L., Kao, C.-H.: Efficient energy-saving targets for APEC economies. Energy Policy 35(1), 373–382 (2007)

    Article  Google Scholar 

  • Huang, Y., Barker, T.: The clean development mechanism and low carbon development: A panel data analysis. Energy Econom. 34(4), 1033–1040 (2012)

    Article  Google Scholar 

  • Hur, T., Kim, I., Yamamoto, R.: Measurement of green productivity and its improvement. J. Clean. Prod. 12(7), 673–683 (2004)

    Article  Google Scholar 

  • Karakosta, C., Marinakis, V., Letsou, P., Psarras, J.: Does the CDM offer sustainable development benefits or not? Int. J. Sust. Dev. World 20(1), 1–8 (2013)

    Article  Google Scholar 

  • Krugman, P.: The myth of Asia’s miracle. Foreign Aff. (1994). https://doi.org/10.2307/20046929

    Article  Google Scholar 

  • Kumar, S.: Environmentally sensitive productivity growth: A global analysis using Malmquist-Luenberger index. Ecol. Econ. 56(2), 280–293 (2006)

    Article  Google Scholar 

  • Kumar, S., Kumar, N., Vivekadhish, S.: Millennium development goals (MDGS) to sustainable development goals (SDGS): Addressing unfinished agenda and strengthening sustainable development and partnership. Indian J. Commun. Med. off. Publ. Indian Assoc. Prevent. Soc. Med. 41(1), 1 (2016)

    Google Scholar 

  • Kurniawan, R., Managi, S.: Sustainable development and performance measurement: Global productivity decomposition. Sustain. Dev. 25(6), 639–654 (2017)

    Article  Google Scholar 

  • Lee, S., Ryu, I., Kim, B., Moon, S.: A review of the current application of N2O emission reduction in CDM projects. Int. J. Greenhouse Gas Control 5(1), 167–176 (2011)

    Article  Google Scholar 

  • Li, X., Chen, Z., Fan, X., Cheng, Z.: Hydropower development situation and prospects in China. Renew. Sustain. Energy Rev. 82, 232–239 (2018)

    Article  Google Scholar 

  • Lin, B., Xu, B.: Factors affecting CO2 emissions in China’s agriculture sector: A quantile regression. Renew. Sustain. Energy Rev. 94, 15–27 (2018)

    Article  Google Scholar 

  • Lo, A.Y., Cong, R.: After CDM: Domestic carbon offsetting in China. J. Clean. Prod. 141, 1391–1399 (2017)

    Article  Google Scholar 

  • Malmquist, S.: Index numbers and indifference surfaces. Trab. Estad. 4(2), 209–242 (1953)

    Google Scholar 

  • Mu, Y., Cai, W., Evans, S., Wang, C., Roland-Holst, D.: Employment impacts of renewable energy policies in China: A decomposition analysis based on a CGE modeling framework. Appl. Energy 210, 256–267 (2018)

    Article  Google Scholar 

  • Nissen, S., Huang, G.: Analysis of the Clean Development Mechanism in China: A Deduction of Key Success Factors Using a Comparison among Implemented Projects and the Adaption to the Paris Agreement. In: 2018 International Conference on Education Reform and Management Science (ERMS 2018) Atlantis Press, pp. 271 (2018)

  • Oh, D.: A global Malmquist-Luenberger productivity index. J. Prod. Anal. 34(3), 183–197 (2010)

    Article  Google Scholar 

  • Oh, D.-H., Heshmati, A.: A sequential Malmquist-Luenberger productivity index: Environmentally sensitive productivity growth considering the progressive nature of technology. Energy Econ. 32(6), 1345–1355 (2010)

    Article  Google Scholar 

  • Protocol, K.: Kyoto protocol", UNFCCC Website. Available at: http://unfccc.int/kyoto_protocol/items/2830.php (1997)

  • Rindefjäll, T., Lund, E., Stripple, J.: Wine, fruit, and emission reductions: The CDM as development strategy in Chile. Int. Environ. Agreem. Politics Law Econ. 11(1), 7–22 (2011)

    Article  Google Scholar 

  • Seres, S., Haites, E., Murphy, K.: Analysis of technology transfer in CDM projects: An update. Energy Policy 37(11), 4919–4926 (2009)

    Article  Google Scholar 

  • Shan, Y., Guan, D., Zheng, H., Ou, J., Li, Y., Meng, J., Mi, Z., Liu, Z., Zhang, Q.: China CO2 emission accounts 1997–2015. Sci. Data 5(1), 1–14 (2018)

    Article  Google Scholar 

  • Sutter, C., Parreño, J.C.: Does the current Clean Development Mechanism (CDM) deliver its sustainable development claim? An analysis of officially registered CDM projects. Clim. Change 84(1), 75–90 (2007)

    Article  Google Scholar 

  • Trotter, I.M., da Cunha, D.A., Féres, J.G.: The relationships between CDM project characteristics and CER market prices. Ecol. Econ. 119, 158–167 (2015)

    Article  Google Scholar 

  • UNFCCC: CDM Project Activities. Available at: https://cdm.unfccc.int/Projects/diagram.html (2017)

  • United Nations: Millennium development goals. Available at: http://www.un.org/millenniumgoals/ (2005)

  • Wang, B.: Can CDM bring technology transfer to China? An empirical study of technology transfer in China’s CDM projects. Energy Policy 38(5), 2572–2585 (2010)

    Article  Google Scholar 

  • Wang, Y., Shen, N.: Environmental regulation and environmental productivity: The case of China. Renew. Sustain. Energy Rev. 62, 758–766 (2016)

    Article  Google Scholar 

  • Wang, Q., et al.: Energy efficiency and production technology heterogeneity in China: A meta-frontier DEA approach. Econ. Model. 35, 283–289 (2013a)

    Article  Google Scholar 

  • Wang, Y., et al.: A study on carbon emissions in Shanghai 2000–2008, China. Environ. Sci. Policy 27, 151–161 (2013b)

    Article  Google Scholar 

  • Wang, S., et al.: Examining the multiple impacts of technological progress on CO2 emissions in China: A panel quantile regression approach. Renew. Sustain. Energy Rev. 103, 140–150 (2019)

    Article  Google Scholar 

  • Weitzel, M., Liu, W., Vaona, A.: Determinants of technology transfer through the CDM: A within-country analysis for China. Climate Policy 15(5), 626–646 (2015)

    Article  Google Scholar 

  • Winkelman, A.G., Moore, M.R.: Explaining the differential distribution of Clean Development Mechanism projects across host countries. Energy Policy 39(3), 1132–1143 (2011)

    Article  Google Scholar 

  • Wu, Y.: Has productivity contributed to China’s growth? Pac. Econ. Rev. 8(1), 15–30 (2003)

    Article  Google Scholar 

  • Wu, J., An, Q., Yao, X., Wang, B.: Environmental efficiency evaluation of industry in China based on a new fixed sum undesirable output data envelopment analysis. J. Clean. Prod. 74, 96–104 (2014)

    Article  Google Scholar 

  • Xia, K., et al.: Analysis of the scientific and technological innovation efficiency and regional differences of the land–sea coordination in China’s coastal areas. Ocean Coast. Manag. 172, 157–165 (2019)

    Article  Google Scholar 

  • Yan, D., et al.: The determinants of urban sustainability in Chinese resource-based cities: A panel quantile regression approach. Sci. Total Environ. 686, 1210–1219 (2019)

    Article  Google Scholar 

  • Yörük, B.K., Zaim, O.: Productivity growth in OECD countries: A comparison with Malmquist indices. J. Comp. Econ. 33(2), 401–420 (2005)

    Article  Google Scholar 

  • Youngman, R., Schmidt, J., Lee, J., De Coninck, H.: Evaluating technology transfer in the clean development mechanism and joint implementation. Climate Policy 7(6), 488–499 (2007)

    Article  Google Scholar 

  • Yu, K., Lu, Z., Stander, J.: Quantile regression: applications and current research areas. J. r. Stat. Soc. Ser. D (stat.) 52(3), 331–350 (2003)

    Google Scholar 

  • Zhang, C., Yan, J.: CDM’s influence on technology transfers: A study of the implemented clean development mechanism projects in China. Appl. Energy 158, 355–365 (2015)

    Article  Google Scholar 

  • Zhang, J., Zhang, L.: Impacts on CO2 emission allowance prices in China: A quantile regression analysis of the Shanghai emission trading scheme. Sustainability 8(11), 1195 (2016)

    Article  Google Scholar 

  • Zhang, Y., Sun, Y., Huang, J.: Energy efficiency, carbon emission performance, and technology gaps: Evidence from CDM project investment. Energy Policy 115, 119–130 (2018)

    Article  Google Scholar 

  • Zhao, Z., Li, Z., Xia, B.: The impact of the CDM (clean development mechanism) on the cost price of wind power electricity: A China study. Energy 69, 179–185 (2014)

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. NDRC AMR: National Development and Reform Commission Academy of Macroeconomic Research, Beijing, China

    Jin Guo & Hanqiao Yang

  2. School of Economics, University of Edinburgh, Edinburgh, United Kingdom

    Hanqiao Yang

Authors
  1. Jin Guo
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Hanqiao Yang
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Jin Guo.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Appendix

Appendix

GML index estimation from 2005 to 2013 at national and provincial levels (previous year = 1).

Region

2005

2006

2007

2008

2009

2010

2011

2012

2013

China

0.998

1.018

1.031

1.049

1.013

1.039

1.081

1.032

1.010

Beijing

0.994

1.026

1.036

1.048

1.025

1.044

1.093

1.028

1.066

Tianjin

0.984

1.010

1.014

1.035

1.002

1.041

1.178

1.112

1.038

Hebei

0.998

1.007

1.008

1.012

1.004

1.006

1.008

1.012

0.999

Shanxi

1.001

1.003

1.009

1.009

1.000

1.012

1.011

1.001

1.000

Inner Mongolia

1.021

1.136

0.952

1.052

1.010

1.002

1.004

1.011

0.998

Liaoning

1.001

1.002

1.006

1.022

1.002

1.014

1.026

1.017

1.009

Jilin

0.998

1.006

1.015

1.018

1.012

1.013

1.008

1.024

1.023

Heilongjiang

0.997

0.999

1.012

1.015

1.000

1.018

1.012

1.000

1.019

Shanghai

0.988

1.019

1.024

1.064

1.060

1.117

1.139

1.013

1.062

Jiangsu

0.998

1.008

1.021

1.023

1.015

1.015

1.020

1.015

1.011

Zhejiang

0.914

1.006

1.012

1.025

1.010

1.030

1.025

1.104

1.002

Anhui

0.996

1.002

1.009

1.008

1.002

1.025

1.018

1.104

0.917

Fujian

0.989

1.011

1.004

1.027

0.999

1.029

1.001

1.130

0.945

Jiangxi

1.004

1.008

1.005

1.027

1.001

1.033

1.025

1.024

0.981

Shandong

0.982

1.012

1.010

1.019

1.010

1.013

1.019

1.002

0.978

Henan

0.989

1.004

1.009

1.022

1.007

1.009

1.012

1.107

0.958

Hubei

0.999

0.996

1.013

1.026

1.009

1.007

1.011

1.027

1.065

Hunan

1.001

1.003

1.016

1.031

1.012

1.028

1.020

1.031

1.038

Guangdong

0.993

1.015

1.022

1.034

1.006

1.022

1.014

1.120

0.954

Guangxi

1.001

1.006

1.012

1.026

0.994

1.016

1.018

1.009

1.017

Hainan

1.000

0.999

1.008

1.009

1.002

1.034

1.003

1.014

1.012

Chongqing

1.001

1.003

1.013

0.996

1.011

1.024

1.022

1.022

1.070

Sichuan

0.996

1.008

1.017

1.014

0.997

1.009

1.043

1.009

1.015

Guizhou

1.002

1.000

1.012

1.019

0.998

1.011

1.011

1.010

1.018

Yunnan

0.996

1.002

1.011

1.019

0.994

1.015

1.022

1.019

1.030

Shaanxi

0.999

1.017

1.007

1.019

0.999

1.008

1.017

1.013

1.020

Gansu

1.002

1.009

1.008

1.011

1.011

0.996

1.013

1.003

1.010

Qinghai

1.002

0.997

1.015

1.006

1.000

1.037

1.011

0.989

1.006

Ningxia

1.002

1.002

1.006

1.008

1.004

1.003

0.991

1.008

1.003

Xinjiang

0.998

1.004

1.005

1.009

0.988

1.019

1.000

0.990

0.996

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Guo, J., Yang, H. CDMs’ effect on environmentally sensitive productivity: evidence from Chinese provinces. Lett Spat Resour Sci 15, 401–422 (2022). https://doi.org/10.1007/s12076-021-00281-6

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s12076-021-00281-6

Keywords

JEL Classification

Search

Navigation