Abstract
This paper estimates the CO2 marginal abatement cost of 286 cities in China based on non-parametric directional distance function method for the period of 2002-2013. We compared the results according to different perspectives, such as the areas, the Gross Domestic Product (GDP) per capita and the environmental and non-environmental cities. The results show that the CO2 marginal abatement cost differs obviously among cities and it’s higher in eastern area than in middle and western area which indicates that the abatement potential is bigger in middle and western area.
Highlights
As we all know, China’s economy has made significant progress since the reform and opening up
The results show that the CO2 marginal abatement cost differs obviously among cities and it’s higher in eastern area than in middle and western area which indicates that the abatement potential is bigger in middle and western area
The distance function values represent the potential of the observed units to be improved compared to the most efficient point located on the frontier of production and the smaller the value, the better the emission performance is
Summary
China’s economy has made significant progress since the reform and opening up. Wei C analyzed the cost and influence factors of carbon abatement in 104 cities of China based on the model [7] In his another literature, he estimate marginal CO2 abatement costs at the provincial level in China, and fitted the marginal emission reduction cost curves based on the results [8]. Chamber et al and Chung et al proposed the nonparametric directional distance function based on DEA first to study environmental performance and shadow prices including unintended outputs [9]. Kaneko et al calculated the cost of SO2 emission reduction in China’s thermal power industry based on the nonparametric directional distance function [12]. L et al estimated the performance of China’s provincial carbon emissions and the cost of carbon abatement based on DEA directional distance function [14]. 286 prefecture-level cities in China during 2002-2013 and provide a more practical theoretical basis to a perfect carbon trading system
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