Arbeitspapier

Estimating the marginal abatement costs of carbon dioxide emissions in China: A parametric analysis

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This paper investigates the technical inefficiency, shadow price and substitution elasticity of CO2 emissions of China based on a provincial panel for 2001-2010. Using linear programming to calculate a quadratic parameterized directional output distance function, we show that China's technical inefficiency increases over the period implying further scope for CO2 emissions reduction in the medium and longer term at best by 4.5% and 4.9% respectively. Our results (notwithstanding regional differences) highlight increases in the shadow price of CO2 abatement (1000 Yuan/ton in 2001 to 2100 Yuan/ton in 2010). Additionally, increasingly steep substitution elasticity highlights the difficult reality of reducing China's CO2 emissions.

Language: Englisch

Bibliographic citation: Series: Kiel Working Paper ; No. 1883

Classification: Wirtschaft
Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
Climate; Natural Disasters and Their Management; Global Warming
Environmental Economics: Government Policy

Subject: CO2 emissions
Shadow Price
Parametric Estimation
China

Event: Geistige Schöpfung

(who): Du, Limin
Hanley, Aoife
Wei, Chu

Event: Veröffentlichung

(who): Kiel Institute for the World Economy (IfW)

(where): Kiel

(when): 2013

Handle: http://hdl.handle.net/10419/88759

Last update: 10.03.2025, 11:41 AM CET

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Object type

Arbeitspapier

Associated

Du, Limin
Hanley, Aoife
Wei, Chu
Kiel Institute for the World Economy (IfW)

Time of origin

2013

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