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Can climate mitigation help the poor? Measuring impacts of the CDM in rural China
Institution:1. Graduate School of Economics, Kyoto University, Japan;2. Graduate School of Economics, Kobe University, Japan;1. Department of Real Estate, National University of Singapore, Singapore;2. Hang Lung Center for Real Estate and Department of Construction Management, Tsinghua University, China;3. School of Social Sciences, Nanyang Technological University, Singapore;1. The Research Institute of Economics and Management, Southwestern University of Finance and Economics, China;2. Economics Discipline Group University of Technology Sydney, Australia;3. Faculty of Economics and Management East China Normal University, China
Abstract:This study examines whether investment in climate change mitigation contributes to poverty alleviation. We investigate the impacts of the renewable energy-based clean development mechanism (RE-CDM) projects on rural communities in China. The impacts of RE-CDM projects are estimated by combining propensity score matching with the difference-in-differences approach. We found that the biomass-based CDM projects significantly contribute to income improvement and employment generation in rural communities in China. Our estimation results also reveal that wind energy-based CDM projects have the potential to increase income and the share of labor force in the primary industry in rural areas. These results suggest different channels through which renewable energy sources affect income.
Keywords:CDM  Renewable energy  Poverty alleviation  Rural development  Propensity score matching  Difference-in-differences  I38  Q42  Q56
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