›› 2018, Vol. 30 ›› Issue (3): 40-46.

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A Study on the Growth Path of Companies under the Clean Development Mechanism: Based on Simulation Market

Li Zhen   

  1. Zhongshan Institute, University of Electronic Science and Technology of China, Zhongshan 528402
  • Received:2015-06-17 Online:2018-03-28 Published:2018-03-26

Abstract:

Clean Development Mechanism (CDM), as one of the ways to deal with climate change, has become a mature market mechanism. Based on the analysis of CDM transaction process and using the simulation technology, this paper finds that the interests are not equally distributed between the developed countries and the developing countries. With tax factor taken into consideration and given a fixed number of participating enterprises, the interests for developed countries will rise and then stabilize at high level while the interests for developing countries will rise faster and then stabilize at a higher level; given a conditionally increasing number of participating enterprises, the developed countries will have less new participants while the developing countries will have much more new participants until finally the total number of participants from the developing countries exceeds that from the developed countries. By analyzing the trading mechanism that causes unequal interest distribution from the perspective of economics, this paper manages to explain why the Western developed countries are gradually losing interest in CDM.

Key words: CDM, low carbon economy, simulation