Today, climate change is among the most hotly-debated topics worldwide. The Clean Development Mechanism (CDM), one of the three financial mechanisms under the Kyoto Protocol open to developing and developed countries, was devised to assist in mitigation of global warming. Since it was initiated,...

International environmental agreements have been and are negotiated to facilitate mitigation efforts on climate change. To avoid severe impacts, global cooperation is required as the reduction of greenhouse gas emissions represents a global public good. However, free-riding incentives impede the...