| Paper Number | KCB-WP-2017-025 |
|---|---|
| Title | Clean Development Mechanism and Deployment of Renewable Energy: Evidence from Countries with Less Developed Financial Markets |
| Title(Other) | |
| Author | Jeayoon Kim ; Kwangwoo Park |
| Publisher | KAIST College of Business |
| Abstract | The Kyoto Protocol created the Clean Development Mechanism (CDM) to reduce carbon emissions around the world. Using a panel dataset of 42 CDM host countries for the 2001-2015 period, we examine the effect of the CDM on deploying renewable energy at varying levels of domestic financial development. We find that the positive effect of the CDM on the deployment of renewable energy is pronounced in countries with less developed domestic financial markets. Given that renewable sectors in less developed financial markets experience shortages of debt and equity financing, obtaining additional funding through the CDM becomes crucial for these sectors. Our results suggest that investing in CDM projects to deploy renewable energy is particularly valuable for developing countries with poor financial markets. |
| Full-Text | * Full-Text 다운로드는 경영대학 학생에게만 제공되고 있습니다. |