Inderscience Publishers

Social and economic aspects of CDM options in Brazil

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This study is devoted to analysing the social and economic aspects of the Brazilian options for projects under the Clean Development Mechanism (CDM) created under the Kyoto Protocol. If, on one hand, the CDM may, theoretically, be an efficient instrument to minimise global control costs of GHG emissions, on the other it will not, necessarily, maximise the welfare of the countries where these carbon saving investments are applied. Based on estimates from Seroa da Motta, Ferraz and Young, financial profitability rates for the major Brazilian CDM investment options are discussed in line with their expected social and environmental development benefits.

Keywords: Clean Development Mechanism, efficiency, secondary benefits, Brazil', s options

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