Research on the economic abatement pathway of carbon peaking in China based on marginal abatement costs and abatement tasks allocation.

Abstract

China needs to achieve its carbon peaking target with minimal economic costs. This paper proposes a framework for achieving the carbon peaking target that emphasizes economic effects. Based on the prediction, the parametric directional distance function (DDF) is adopted to calculate the total factor carbon emission efficiency and marginal carbon abatement cost in each region of China before 2030, and the allocation scheme of the abatement tasks necessary for carbon peaking is optimized from the perspective of least cost. The empirical results show the following: (1) The predicted rapid growth of China's economy from 2020 to 2030 will lead to a rapid increase in marginal abatement costs, with the average marginal carbon abatement cost increasing from 8,833 yuan/ton to 15,077 yuan/ton. The cost of carbon emission reduction in the future is very expensive. (2) The measured marginal abatement costs in China are positively correlated with carbon emission efficiency. In order to ensure economic development, developed regions should try to maintain the development trend, while the central and western regions take on more emission reduction tasks. (3) The emission efficiency is improved by optimizing the allocation scheme of the abatement tasks required to reach the peak, and the scientific and orderly path to reach the peak of each province and the corresponding lowest economic cost are obtained. This paper are of great theoretical and practical significance for the initial quota allocation in carbon trading market and ensuring the achievement of carbon peaking target under economic effect.