Does Geography Matter for the Clean Development Mechanism?
Under the Kyoto Protocol, the Clean Development Mechanism (CDM) is designed to serve the dual purposes of allowing the industrialised countries to earn credits by investing in project activities that reduce greenhouse gas (GHG) emissions, while contributing to sustainable development in developing countries via the flows of technology and capital. The fact that the geographic distribution of CDM projects is highly uneven motivates this research into whether certain geographic endowments matter for the CDM development.