Marginal abatement costs of carbon dioxide in China: A nonparametric analysis

Qunwei Wang · Qinjun Cui · Dequn Zhou

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Climate Change Policy and Economics Renewable energy and sustainable power systems Energy, Environment, Economic Growth

Abstract

The estimates of abatement costs about CO2 can provide useful information for policy-makers. With the framework of production theory, a marginal abatement costs model is established using the nonparametric method, and empirical results about China in 2007 are found in this paper. The two CO2 reduction strategies, maintaining the level of CO2 or reducing CO2 and expanding GDP at the same time, impact potential GDP greatly. 143.5 millions CO2 reduction means 35.1billions GDP loss and the marginal abatement cost of CO2 is 475.3yuan/ton on average.

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References

2004Characteristics of a polluting technology: theory and practice 2006Environmental production functions and environmental directional distance functions 2006Measuring environmental performance under different environmental DEA technologies 1996The Price of Pollution: A Dual Approach to Valuing SO2Allowances 2012Reestimating the capital stock of China 2009The great climate debate 2002Measuring the cost of environmentally sustainable industrial development in India: a distance function approach

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