Marginal Costs of Carbon Dioxide Abatement: Empirical Evidence from Cross-Country Analysis

David Maradan and Anatoli Vassiliev

Swiss Journal of Economics and Statistics (SJES), 2005, vol. 141, issue III, pages 377-410

Abstract: This paper examines how the marginal CO2 abatement costs vary throughout stages of economic development, and how these variations may be related to the Environmental Kuznets Curve (EKC) hypothesis. By assuming the existence of a technological link between production of desirable outputs and pollution, shadow prices of carbon emissions are estimated for 76 developing and developed countries. The results show that immediate carbon reductions are more costly in terms of desirable output forgone in the developing economies than in the developed ones. Several interpretations of this finding are finally proposed.

Keywords: Carbon dioxide emissions; Marginal abatement costs; Environmental Kuznets Curve; Directional distance function (search for similar items in EconPapers)
JEL-codes: C61 Q52 Q53 Q56 (search for similar items in EconPapers)
Date: 2005
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