Estimating the Marginal Abatement Cost Curve of CO2 Emissions in China: Provincial Panel Data Analysis
نویسندگان
چکیده
This paper estimates the Marginal Abatement Cost Curve (MACC) of CO2 emissions in China based on a provincial panel for the period of 2001-2010. The provincial marginal abatement cost (MAC) of CO2 emissions is estimated using a parameterized directional output distance function. Four types of model specifications are applied to fit the MAC-carbon intensity pairs. The optimal specification controlling for various covariates is identified econometrically. A scenario simulation of China’s 40-45 percent carbon intensity reduction based on our MACC is illustrated. Our simulation results show that China would incur a 559-623 Yuan/ton (roughly 51-57 percent) increase in marginal abatement cost to achieve a corresponding 40-45 percent reduction in carbon intensity compared to its 2005 level.
منابع مشابه
Marginal Abatement Cost of CO2 in China Based on Directional Distance Function: An Industry Perspective
Industrial sectors account for around 70% of the total energy-related CO2 emissions in China. It is of great importance to measure the potential for CO2 emissions reduction and calculate the carbon price in industrial sectors covered in the Emissions Trading Scheme and carbon tax. This paper employs the directional distance function to calculate the marginal abatement costs of CO2 emissions dur...
متن کاملPollution Emissions, Environmental Policy, and Marginal Abatement Costs
Pollution emissions impose serious social negative externalities, especially in terms of public health. To reduce pollution emissions cost-effectively, the marginal abatement costs (MACs) of pollution emissions must be determined. Since the industrial sectors are the essential pillars of China's economic growth, as well as leading energy consumers and sulfur dioxide (SO₂) emitters, estimating M...
متن کاملMarginal CO2 abatement costs: Findings from alternative shadow price estimates for Shanghai industrial sectors
Shanghai, one of the most developed cities in China, is implementing a pilot regional carbon emission trading scheme. Estimating the marginal abatement costs of CO2 emissions for the industrial sectors covered in Shanghai's emission trading scheme provides the government and participating firms useful information for devising compliance policies. This paper employs multiple distance function ap...
متن کاملSpatiotemporal Characteristics, Determinants and Scenario Analysis of CO2 Emissions in China Using Provincial Panel Data
This paper empirically investigated the spatiotemporal variations, influencing factors and future emission trends of China's CO2 emissions based on a provincial panel data set. A series of panel econometric models were used taking the period 1995-2011 into consideration. The results indicated that CO2 emissions in China increased over time, and were characterized by noticeable regional discrepa...
متن کاملCarbon Emissions Abatement Cost in China: Provincial Panel Data Analysis
This paper employs the quadratic directional output distance function to derive shadow prices of China’s aggregate carbon emissions at the province level between 1997 and 2010. The empirical results indicate that the national weighted average shadow price presents an “N-shape” curve across the sample period, experiencing the initial phase of growth followed by a phase of deterioration, and then...
متن کامل