Site Location of Projects in China by Clean Development Mechanism: An Input Output Analysis

Abstract

This paper examines which region in China would be suitable as a location for CDM projects using the Multi-Regional Input-Output Table China 2000. The criteria for selection used in this research include such socio-economic effects as output and employment increase induced by CDM projects, spillover effects of technology transferred by CDM projects from advanced countries and such environmental effects as reduction of CO₂ and SO₂ emissions by CDM projects. As a result of simulation analysis, the ‘South coast’, ‘North municipalities’, and the ‘Central region’ were found to be potential candidates as suitable regions for a site of CDM projects based on comprehensive evaluation of the above-mentioned criteria.