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 MultiRegional Input-Output Table China 2000. The criteria for selection used in this research include such socioeconomic 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 CO 2 and SO 2 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.