Clean Development Mechanism and International Technology Transfer : Empirical Evidence on Wind Power

This article examines the effect of the Kyoto Protocol's Clean Development Mechanism (CDM) on the international transfer of wind power technologies. The analysis is conducted using patent data from over 100 countries during the period 1988–2008. It is found that transfers from Annex I countries to non-Annex I countries are significantly affected by the contemporaneous establishment of projects under the CDM. However, when taking into account the cumulative effect of CDM projects, the effect is negative. Finally, the effect of domestic absorptive capacity in the host country is positive and significant. Because involvement with the CDM may increase the latter, this is an important area for further research