Abstract
Corporate motives and strategies of both investing and hosting country affect the outcomes of a clean development mechanism (CDM) project— who introduces what technology to whom—and result in large differences in economic viability and the CO 2 emission reductions. This is particularly true for steel industry in which steel making consists of many detailed and complex processes, a given strategy could produce cumulative effects of the individual technologies used, leading to large energy savings overall. The objective of this study is to demonstrate some analytical methods that can be used to quantitatively evaluate the impacts of technology selection on the profit performance of CDM projects. Specifically, in this study we analyze a CDM project to introduce energy saving technology from Japan to a small steel manufacturer in China's Shandong Province, and conduct a simulation of the quantitative relationships between various technology options and profitability. Based on these results, we examine the environmental and economic significance of technology selection for CDM projects. To take this further, we then reconsider the profitability of a project as typical FDI activity (i.e., without the CDM), and by comparing this outcome with the CDM case, we clarify the significance and potential of the CDM.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
