Abstract
Emissions trading system (ETS) is an effective approach to achieve China's “double carbon” targets. An accurate measurement of carbon MAC (marginal abatement cost) serves as the basic evidence for the stability of ETS and market validity. This paper constructs a comprehensive analytical framework, including four parametric and two non-parametric methods, to analyze the efficiency and carbon MAC of 92 large coal-fired power plants in China. Results show that the average technical efficiency and shadow price were 0.92 and 13.63 RMB/ton, respectively. As verified by Monte Carlo simulations, each method has its cons and pros, while the MAC calculated by the parametric stochastic frontier analysis (SFA) is the closest to the real carbon market price. Additional analyses show that the MAC is positively related with plant scale and negatively related to the provincial carbon intensity targets. This result suggests power plants' technological progress and the asymmetric government subsidies.
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