Does major agriculture production zone have higher carbon efficiency and abatement cost under climate change mitigation?

Abstract

Abstract In this paper we investigate the carbon efficiency and abatement cost for different main functional regions in China, to test whether major agriculture production zone has higher carbon efficiency and abatement cost than other functional regions. For this purpose, we use a global non-radial distance function to examine the efficiency and abatement cost of carbon emissions and take China’s Poyang Lake Ecological Economics Zone (PLEEZ), one of China’s national strategy for sustainable development, as an empirical study. By using the non-radial efficiency model, the carbon emissions efficiency indicator can be constructed. By employing the dual model of the non-radial directional distance function, the shadow prices of carbon emissions, which is interpreted as marginal abatement cost can be derived. County level data from 2009 to 2013 of the PLEEZ is used as the empirical investigation. Empirical results show that the CO2 emissions of the PLEEZ are not performing efficiently and the CO2 emissions efficiency remains at a very low level with an average value of 0.279. Meanwhile, the shadow prices of CO2 emissions are calculated, with a mean value of 11.867 yuan per ton, which is relatively low compared with other previous studies of different regions or industry and indicate that carbon emissions are not strictly regulated. Moreover, significant heterogeneities in the carbon efficiency and abatement cost are found among three major functional zones in the PLEEZ remain. Major agriculture production zone shows better carbon efficiency than key ecological function zone, but lower than key economic development zone. It is also found carbon abatement cost of major agriculture production zone is lower than key economic development zone indicating the less pressure under climate change mitigation.