On alternative CDM baseline schemes and their appropriateness: ex-ante, ex-post, and ex-post proxy baselines. Discussion Paper Nr. 083. 21COE. Interfaces for Advanced Economic Analysis

Abstract. CDM (Clean Development Mechanism) is one of the mechanism included in the Kyoto Protokol, playing an important and interesting role in linking emission reduction in developing countries to that of developped contries. For CDM, one difficulty was to have a sound and reliable standard from which real reduction is computed, called a baseline. In Marrakech Accord, three categories of baseline setting methode are listed and a baseline method using industry average is one of them. By far, approved methodology falling into this category is very few, however this type of methodology imposes an interesting question. Along with our past study on the comparrison of several options in baseline-setting method, we shall examine this particular method, utilizing standard oligopoly game model