Carbon market and technology transfer: statistical analysis for exploring implications

Abstract

The impact of clean development mechanism (CDM) projects on climate change technology transfer (CCTT), which is essential for developing countries to achieve higher mitigation targets and move towards more sustainable paths, has been, until now, inadequately understood and analysed. The aim of this paper is to analyse the carbon market contribution to CCTT, mainly through the CDM, so as to stimulate developing countries towards the deployment and diffusion of low-carbon technologies that fulfil their sustainability goals. Indeed, relatively few studies deal with the assessment of the CDM contribution to CCTT, mainly through desk analysis and empirical evaluations on project design documents. To the best of our knowledge, there are no studies dealing with CCTT through CDM projects using statistical approaches. The added value of this article is the use of statistical analysis, time series analysis and multiple linear regression to analyse carbon market experiences in selected cross-representative developing countries. This assessment indicated the very heterogeneous CCTT across CDM project types, varying significantly in terms of reliance on imported technology, mix of equipment and knowledge and source countries for the technology.