Estimating the marginal abatement cost curve of CO2 emissions in China: Provincial panel data analysis
Aoife Hanley and
Chu Wei ()
No 1985, Kiel Working Papers from Kiel Institute for the World Economy (IfW)
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.
Keywords: CO2 Emissions; Marginal Abatement Cost Curve; Model Selection; China (search for similar items in EconPapers)
JEL-codes: Q52 Q54 Q58 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cmp, nep-cna, nep-ene and nep-env
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Journal Article: Estimating the Marginal Abatement Cost Curve of CO2 Emissions in China: Provincial Panel Data Analysis (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:1985
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