Institut for Statskundskab

Gert Tinggaard Svendsen

Why only few CDM projects? The case of reforestation projects and remote sensing

Publikation: Bidrag til tidsskrift/Konferencebidrag i tidsskrift /Bidrag til avisTidsskriftartikelForskningpeer review

CDM projects have large potentials but also face significant obstacles that have so far limited their applicability. Two serious problems that an effective contracting faces are the presence of private information and the lack of sufficiently precise output measures. In a principal-agent framework, where local landowners are the agents and have private information about their costs, we analyse the implication of being able to condition payments to the agent based on observed output and therefore can offer a differentiated contract. This is compared with a situation where only a uniform payment structure is feasible. In the case of reforestation projects, and with respect to both economic and sustainability criteria, our model point to that a differentiated payment structure based on output due to remote sensing is superior to a uniform contract.
OriginalsprogEngelsk
TidsskriftInternational Journal of Global Environmental Issues
Vol/bind13
Nummer1
Sider (fra-til)25-42
Antal sider18
ISSN1466-6650
DOI
StatusUdgivet - 2013

    Forskningsområder

  • Clean Development Mechanism, CDM projects, REDD, Reducing Emissions from Deforestation and Forest Degradation programme, remote sensing, uniform payment, GHG emissions, reforestation, Sustainability, principal agent, greenhouse gases, private information, sustainable development, output measures, differentiated contracts

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