Clean Development Mechanism Projects in Latin America : beyond reducing CO2 (e) emissions. A case study in Chile

摘要

The Clean Development Mechanism (CDM) was created to compensateudunderdeveloped countries for their contribution to mitigate climate change. Underudthese rules, those projects showing the lower cost, in terms of investment, for eachudtonne of CO2 (e) saved, will be the ones selected. However, even if this selectionudprocess seems quite rational, it can result in a suboptimal allocation of resources,udwhen other impacts of these projects, also having to do with social welfare, areudconsidered. This point is illustrated in this paper by comparing the financial cost of CERudcredits of two current CDM projects in Chile, the Santa Marta Landfill Gas CaptureudProject and the Corneche‐Los Guindos Methane Capture from Swine Manure Project,udwith that of a third, “virtual” project, the upgrading of the Renca Generation Plant inudSantiago de Chile to a gas fired combined cycle (CCGT) Plant. Even if this third project isudmuch less efficient in financial terms, it shows a very important ancillary benefit: itsudimpact on human health. When this impact is introduced, the result, as expected, is auddrastic change in the relative social profitability of the three projects.