This study provides a first-cut estimate of the potential carbon emissions impacts of the Clean Development Mechanism (CDM), focusing on new power plants in the power sector of non-Annex 1 countries. We conclude that while the CDM could induce some legitimate lower-emission electricity generation in host countries, it could also give rise to a considerable amount of spurious emissions allowances by crediting non-additional ("free-rider") activities—activities that would have taken place even in the absence of the CDM. We find that under some plausible CDM regimes, the CDM could serve primarily as an instrument for generating spurious credits, and only secondarily as an instrument for economic efficiency or sustainable development.

This report presents a new detailed analysis of the energy impacts, carbon and pollutant emissions reductions, and economic benefits in New England of the national policies and measures analyzed in America’s Global Warming Solutions. That study indicated that the region would reap about one sixth of the net national employment created. Now, achieving such benefits by 2010 would require an even more aggressive set and schedule of policies, or else the benefits would occur somewhat later in time. Nonetheless, these results show that a truly aggressive national policy commitment to the problem of climate change could achieve large near-term carbon emissions reductions along with environmental and economic gains.