Beyond the emission market: Kyoto and the international expansion of waste management firms

This paper analyses the participation of firms without GHG emission liabilities as technology providers in CDM and JI projects, the flexibility mechanisms of the Kyoto Protocol. It argues that the motivations for those firms to engaging in CDM and JI projects is based on market stimuli beyond those related to the emission market itself. Instead, their motivations are largely associated with search for new markets where their technological resources and expertise can be exploited. The analysis is based on three firms from the Dutch waste management industry. These cases suggest that the Kyoto's mechanisms compensate to some extent the weakness of the underdeveloped waste management sector in developing and transition economies.

Key words:Waste Management Industry, Kyoto Protocol, International Expansion, Firm-specific advantages

JEL codes: L19; L22; L59; L98; Q28

UNU-MERIT Working Papers ISSN 1871-9872