Emission Reduction Cost Research Articles

Targeting carbon emissions mitigation in the transport sector – A case study in Urumqi, China

Promoting changes in the transport energy mix is critical to reducing carbon dioxide emissions from the transport sector. The development of zero-carbon energy or low-carbon energy has thus become an accelerating global trend. This work develops a systematic integrated framework to support carbon reduction for an urban transport system. Firstly, a transport metabolism model is proposed. Secondly, based on the Intergovernmental Panel on Climate Change (IPCC) carbon accounting approach, carbon emissions of passenger transport systems are calculated. According to carbon emissions reduction policies and the transport metabolism, four hypothetical scenarios are investigated. Under the constraints of carbon emissions targets and transport demands, the carbon emission pinch analysis (CEPA) method is used to determine the minimum demand for zero-carbon energy and optimize the energy mix of transport modes. Passenger transport in Urumqi, China is analyzed as an illustrative case study. For the optimal scenario, the zero-carbon energy (electricity) demand is 1.07×109 kWh. The optimal energy mix for private cars is that electricity, gasoline, and compressed natural gas usage accounting for 14.5%, 25.5%, and 60%, respectively. The unit emission reduction cost of policies is evaluated for the specific policies. The implementation priority of the policies is then determined. The potential transport mode shift is determined by a marginal cost diagram. The transport–energy nexus is also considered. Results show that the most effective measure of carbon emissions reduction in the transport sector is fuel switching. General policy implications of these results for other urban centers are then discussed.

Cost and potential for CO2 emissions reduction in China’s petroleum refining sector—A bottom up analysis

The petroleum refining sector is energy intensive and has been identified as one of the target industries for CO2 emissions control by China’s emissions trading scheme. A detailed accounting of the cost of emissions reduction is of great significance for the petroleum refining sector to comply with emission reduction target. In this paper, six categories of CO2 abatement technologies are identified in China’s petroleum refining sector, their CO2 emissions reduction cost as well as the potential are estimated using a bottom-up method. Most of the technologies in the sector are cost-effective, which has contributed approximately 76.4% of sectoral total emissions reduction. New equipment technology provides the greatest contribution to emissions reduction, while new materials technology offers the lowest contribution. The implementation of the emissions trading scheme will increase the potential for emissions reduction only if the CO2 price can be higher than 200 CNY/t. Given the amount of emissions reduction that technologies can provide will not exceed 40% of the total emissions; firms must find more diversified ways when facing more stringent emissions control.

How does environmental regulation promote technological innovations in the industrial sector? Evidence from Chinese provincial panel data

Promoting technological innovations by environmental regulation is one of the essential means to achieve green transformation. This study investigates the effect of environmental regulation on technological innovations based on the provincial panel data of industrial sectors in China during the years 2005–2015. The two-way fixed-effect panel data model is used to investigate the marginal and heterogeneous impacts empirically. Results indicate a U-shaped relationship between environmental regulation and technological innovations. In the short-term, environmental regulation has an “offsetting effect” on the research and innovation capacity of China's industrial sector. However, with the deepening of environmental regulation, it forces the industry to reduce the cost of pollution control by improving technological innovation capacity, thus creating a “compensation effect”. Results also show that environmental regulation policies changed the location and industry selection of foreign capital, which weakened the positive effect of FDI on technological innovations, indicating the “pollution shelter” effect. From the perspective of different types of enterprises, due to the higher cost of energy conservation and emission reduction, environmental regulation is detrimental to the technological innovations of state-owned enterprises. In particular, we find that industries with a higher degree of market competition and higher human capital investment tend to have stronger technological innovation capabilities.

Shadow prices of industrial air pollutant emissions in China

Shadow prices of undesirable outputs assess the opportunity costs of emissions reduction and provide a comprehensive measuring indicator for the overall environmental regulation stringency. Shadow prices of industrial air pollutant emissions in China for 2006–2016 have been estimated by different nonparametric models, and their determinants, as well as the emissions controlling effects of environmental regulations, have been further investigated in this study. Our empirical results reveal that the conventional polluting technology model is consistent with the two sub-technologies model, and that shadow prices estimated by different models differed in absolute values but shared the same growth trends and regional characteristics. Decomposition results according to the logarithmic mean divisia index (LMDI) method indicate that variations in the shadow prices were due to the combined forces of the energy saving and end-of-pipe controlling effects in the analyzed periods. Moreover, we found that China’s environmental regulations with regional disparities in recent years (2006–2016) have effectively reduced industrial air pollutant emissions at an increasing rate, and that the environmental taxes imposed in 2018 still followed the existing regional unbalances of environmental regulation stringency.

Progress in Research on the Influences of Climatic Changes on the Industrial Economy in China

Global climate changes have led to ocean acidification, ice and snow melting, a continuous rise in temperature, and an increasing frequency of extreme weather events, with profound impacts on the social economic system. With the aggravation from climate changes, even the industrial fields with a relatively strong resistance to climatic changes have also suffered serious losses. At present, the vulnerability of the industrial field is growing, and the absolute economic losses are increasing. The quantitative evaluation of these industrial economic losses is therefore an important basis for formulating policies to tackle global climate change, and analyzing the current research progress can provide ideas and methods for the effective evaluation of the industrial economy. Therefore, in this paper, we summarized both the positive and negative effects of climate changes on the industrial fields and found that the influences of climatic changes on different industrial sectors are slightly variable. For example, while the mining industry, so far, has positively responded to the changing climate, severe weather events such as storms, drought, and rain could severely impede the normal production and business operation activities of the mining industry in the future. The manufacturing industry mostly involves indoor jobs, which are relatively resistant to extreme weather events, and some industries have complex response mechanisms. In terms of the construction industry, its losses are mainly indirect through increased electricity costs. The production and supply industries for electricity, heat, and water would suffer transmission supply losses in extreme weather events; and as the largest carbon emission industries, the costs of emission reduction would affect the economic growth of this sector in the short term. Overall, the industrial sectors pay relatively high costs for climate change mitigation and adaptation, and therefore, the quantitative evaluation of industrial economic losses through models is crucial for both the development of reasonable policies and ensuring a smooth and consistent growth of the industrial economy.

Greenhouse gas emission reduction potential and cost of bioenergy in British Columbia, Canada

The Canadian province of British Columbia (BC) provides an informative case study of bioenergy development, because it relies heavily on fossil fuels but has enormous bioenergy potential. We have examined the potential contribution of bioenergy to reducing BC's GHG emissions. The approach of combining life cycle assessment and economic evaluation to prioritize options should be applicable generally. Biomass availability, including forestry resources, agricultural waste and municipal solid waste, is estimated. Through simplified Life Cycle Assessment, GHG reduction potential of biogas, bioethanol, biofuels from hydrothermal liquefaction, and district heating are quantified, along with the associated GHG reduction costs. The analysis shows that existing biomass resources could yield 110–176 PJ per year, reducing GHG emissions by 13.0–15.7%. Bioenergy from waste streams is already cost-effective and should be prioritized in the short term. However, bioenergy from forestry resources, especially conversion to liquid biofuels, is prohibitively expensive, with GHG reduction cost exceeding CAD $300/t CO2-eq. The total extra cost required to achieve full utilization of BC's biomass resources is estimated as 0.8–2.4 billion dollars. To close the cost gaps between bioenergy and fossil fuels, both technological improvement and external cost adjustment through measures like carbon taxation will be needed.

Value of technology in the U.S. electric power sector: Impacts of full portfolios and technological change on the costs of meeting decarbonization goals

Abstract Power sector decarbonization is an important pillar of climate mitigation efforts, but perspectives differ about the relative competitiveness of generation technologies and how limited portfolio approaches (e.g., where non-renewable generation options are prohibited) could alter the costs and likelihoods of reaching emissions reduction goals. The existing literature on impacts of technological availability and cost on electric sector planning typically use models that do not have sufficient technological, spatial, and temporal detail to adequately resolve the economic competitiveness of variable renewable energy vis-a-vis dispatchable generators. Using a state-of-the-art energy-economic model, this work examines impacts of technological availability and advanced generation technologies on U.S. electricity market outcomes across a range of regional, market, and policy contexts. We show that decarbonization costs are 11%–76% higher as technological options are removed from consideration (incremental compliance costs for a 95% CO2 reduction below 2005 levels are roughly twice as high when new nuclear, carbon-capture-equipped units, and transmission are not allowed). However, the economic and technical implications of limited portfolios depend on the market and policy contexts (e.g., costs are higher with stringent targets, more extensive end-use electrification, and lower gas prices) and the costs and capabilities of the remaining options. The analysis demonstrates how lower temporal and spatial resolution models likely understate the value of technology by omitting key economic and technical features of high variable renewable pathways. Additionally, the analysis quantifies how technological change can lower costs of emissions reductions by 7%–73% and how low-cost battery storage can provide a hedge against higher costs when technological portfolios are limited.

Emission abatement in shipping – is it possible to reduce carbon dioxide emissions profitably?

The shipping sector generates significant amounts of carbon dioxide emissions on annual basis. The excess amount of carbon dioxide is harmful for both the environment and the society, and partly for that reason, there is willingness and pressure to decrease the volume of anthropogenic carbon dioxide emissions in shipping. Shipping is a highly competitive market, and the decisions to invest in environmentally sustainable solutions are often linked to questions related to money.In this article, we investigate operational and technological measures by which shipping companies can not only reduce carbon dioxide emissions but also obtain an economical payoff for doing so. We do this by modeling year-to-year emission reduction potentials and cost structures for a sample of cargo ships operating in the sector of short sea shipping. Our model responds to the natural life-cycle of operating vessels, meaning that these ships are docking every five years and getting to end-of-their-life at the age of 30 years. Based on these principles, the ships are equipped with chosen emission reduction measures in different emission abatement scenarios. Both the emission abatement potentials as well as the investment costs and possible cost savings due to the improved operating efficiency are calculated.We conjecture that with many possible emission-reduction methods available and the investments of time and money these all require, we find methods and solution combinations that would be economically reasonable and net-present-value positive for the shipping companies to execute. Our findings are in line with the prior literature arguing that a significant amount of carbon dioxide emissions can be reduced from the shipping sector profitably. This is partly because of the improved operational performance and partly because of the enhanced energy efficiency.

Pricing and Carbon Emission Reduction Decisions in a Supply Chain with a Risk-Averse Retailer under Carbon Tax Regulation

Carbon tax is an emission regulation, which widely used to curb the carbon emissions generated from firms. In the context of carbon tax policy, firms need to determine an optimal carbon reduction level and optimal product prices. To address firms’ decision-making challenges, this paper considers a two-echelon supply chain consisting of a single manufacturer and a single retailer under carbon tax policy; it establishes a Stackelberg game model with a risk-averse retailer and a risk-neutral manufacturer who is the leader of the game. The paper studies the influence of the government’s carbon tax policy and retailer’s risk-averse attitude on the optimal decision of the supply chain. The result shows that when the retailer is risk aversion, the degree of risk aversion of the retailer is positively correlated with the wholesale price of the manufacturer and unit carbon emission reduction, and within a certain range of carbon emission reduction cost coefficient, it is positively correlated with the price of products; with the increase of the carbon tax rate imposed by the government, the retail price of unit products, the wholesale price of the manufacturer, and the carbon emission reduction of unit products also increase. Finally, the results are verified by numerical examples.

Does the different sectoral coverage matter? An analysis of China's carbon trading market

By the end of 2017, China formally established the national carbon trading market, however, only electricity industry was eligible to participate in the emission trading scheme (ETS). This paper aims to answer the question as to what should China do after the first step of establishing China's national ETS market using a dynamic recursive CGE model with six scenarios from different coverage according to relevant documents. The results show that when more industries are covered in ETS market it will lead to a higher GDP performance and less ETS price in general. Since the trading price is related to the marginal emission reduction cost of enterprises, the coverage of enterprises with low emission reduction cost can bring lower prices. However, there is no direct relationship between carbon price and emission reduction, as the coverage is different in different. There is no obvious relationship between the additional burden of enterprises and emission reduction, it is only related to carbon price and the coverage. Finally, we find that after covering the power generation industry, the carbon market should cover other primary energy production enterprises, which will bring much better emission reduction benefits than the original plan of the National Development and Reform Commission in China.

Marginal abatement cost under the constraint of carbon emission reduction targets: An empirical analysis for different regions in China

As the global climate and environmental issues become increasingly serious, low-carbon development has become a consensus among countries to seek new economic growth pathway. As an important emitter of carbon dioxide, China has put forward “Thirteenth Five-Year Plan” (TFYP) outline that carbon dioxide emissions per unit of gross domestic product (GDP) will be 18% lower in 2020 than that in 2015. To measure the policy effects on CO2 emission reduction and abatement costs, the directional distance function model is introduced in this paper, and the sensitivity analysis is conducted to verify the rationality of our index formulation. The results show the areas with the highest carbon emission control target level have significantly higher marginal abatement costs than that of other areas. In the short term, the reduction targets policy effect on decreasing carbon abatement cost is not significant. Through sensitivity analysis, we further discovered that the carbon emission reduction cost is less sensitive to the carbon emission reduction target, and the impact in the short term is smaller. However, as time goes by, the impact increases. We suggest that the government should guide interregional enterprises to cooperate and play a synergistic role. Implementing the multilevel emission reduction targets and expanding the scope of trading in the national carbon trading market are especially important to optimize the allocation.

Cost-sharing contract design in a low-carbon service supply chain

This paper investigates a service supply chain (SC) consisting of a service provider (SP) who is in charge of carbon emission reduction and service, and a service integrator (SI) who is responsible for low-carbon advertising, considering corporate social responsibility (CSR). Given that SP shares SI’s advertising cost, SI may have three types of cost sharing decisions, namely, not sharing any cost of SP (contract PA), sharing SP’s emission reduction cost (contract PAIE), or sharing SP’s service cost (contract PAIS). We establish three differential game models to explore the optimal decisions, and identify the conditions under which SP and SI would provide positive participation rates. Our findings demonstrate that consumers’ low-carbon preference, and chain members’ marginal profits and CSR behaviors significantly influence the optimal solutions. Furthermore, we indicate that two-way contracts (contracts PAIE and PAIS) could benefit the entire service SC and its members. Specifically, SI prefers contract PAIE when SP’s service cost efficiency is lower, whereas he would rather choose contract PAIS under a higher one. More importantly, contracts PAIS and PAIE would be the potential equilibrium contract when SI has a relatively high marginal profit. When it is sufficiently low, contracts PAIE and PA would be the possible equilibrium contract.

Equilibrium cost of water environmental protection based on watershed sustainability

There are multiple relationship curves between watershed socioeconomic development and water environmental conservation. The goal of this paper is to present a theoretical pattern of economic activities and water environmental improvement by incorporating their bidirectional causality relationship. The Environmental Kuznets Curve (EKC) has been useful in connecting economic and environmental concepts, thus becoming an important tool for evaluating watershed sustainability. The high governance cost makes water pollution-intensive goods relatively expensive to produce. According to the EKC, there is an inverted U‐shaped relationship between water environment deterioration and the level of social and economic improvement. Based on EKC hypothesis, we studied the coordinated relationship between environmental protection of water and economic and social sustainable development in the Huntai River Watershed from 2003 to 2012 by means of a panel threshold data. The EKC is an empirical curve that describes the relationship between economic restructuring and water environmental conditions improvement. The Green Environmental Kuznets Curve (GEKC) is used to describe the relationship among watershed pollution emissions, the environmental quality and income per capita. However, according to the GEKC, U‐shaped relationship exists between the coordination of water environmental protection and the level of social economic development (SED). The GEKC is affected by water resource consumption, the regional trade situation (T), the per capita gross domestic product level (Y), and controls on the total amount of water pollution discharge. We try to adjust to the type of GEKC curve and apply dataset of water pollutant emission reduction cost control to fit main characteristic of equilibrium cost. In accordance with Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) data statistical analysis, the value of the GEKC regression equation independent variables Y, Y2, per capita water resources consumption (E), T, adding value of production (AVP) and modified socioeconomic development index (MSDI) were 1.988, −0.150, 0.720, 0.216, 0.070, and 1.890, respectively. In the long-term, the correlation formula of watershed per capita sewage discharge (C) to Y was 2.090–0.300Y. For every 1% increase in E, T, AVP, and MSDI, C increased by approximately 0.720%, 0.216%, 0.072%, and 1.890%, respectively. The E, T and MSDI are key factors in developing an effective way to control the levels of water pollution discharge. Pollution is endogenous, so water environment pollution is not necessarily caused by economic growth. According to the total amount control of water pollution discharge, the GEKC equilibrium optimization calculation results can be used to effectively control watershed pollutant emissions and improve water environmental quality. Through the adjustment of industrial structure or industrial transformation and technological progress, it is possible to change the relationship between current economic growth and water environment. With GEKC related Curve characteristic and indicator classes, it is possible to realize harmonious and sustainable development of regional economy and society in the Huntai River Watershed.

Comparing alternative heavy-duty drivetrains based on GHG emissions, ownership and abatement costs: Simulations of freight routes in British Columbia

This study quantified the well-to-wheel GHG emissions, total ownership costs and abatement cost for 16 different heavy-duty truck (HDT) drivetrains, including those powered by natural gas, electricity, and hydrogen. Using the case of British Columbia, Canada, we employed GPS activity data for almost 1600 container tractor-trailer trucks to extract six distinct drive cycles. Monte Carlo simulation was used to evaluate the range of uncertainties in several critical model parameters. Results vary widely across drivetrains and across drive cycles. Using hydroelectricity, the battery electric catenary and pure battery electric drivetrains emit the lowest GHG per tonne km on short and long haul cycles respectively. On average over the variety of drive cycles, the plug-in parallel-hybrid diesel has the lowest total ownership cost (including infrastructure costs) for both short and long haul operations. We divided ownership costs by GHG reductions to calculate abatement costs ($/tonne). Plug-in parallel hybrid diesels have the lowest abatement cost, with negative costs on most drive cycles either using diesel or bio-diesel. Comparing drivetrains with their maximum cargo loads, plug-in parallel hybrid fuel cell and conventional diesel have the highest capacity on short and long haul routes respectively. Our analyses can help policymakers, industry and other stakeholders to compare different pathways to reduce GHG emissions in freight, including tradeoffs between the magnitude and cost of emissions reduction. Our conclusion highlights the implications and challenges of drivetrain choice, as well as recommending some areas for further improving the analysis.

The Practical Operation of Japan’s Joint Crediting Mechanism

The Paris Agreement proposed a new measure to replace the Kyoto Protocol’s Clean Development Mechanism (CDM) (and Joint Implementation) at the end of the Protocol’s second compliance period in 2020. The Japanese government has developed the Joint Crediting Mechanism (JCM) with the inadequacies of the CDM in mind. The JCM, therefore, deserves close study. In a previous paper the author outlined the features of the JCM. This paper draws on interviews with government officials, consultants and corporate participants to assess the practical application of the JCM. It concludes that for the program to better achieve its full potential from an environmental perspective it would be preferable for JCM credits to be of value. Furthermore, although the JCM also has diplomatic and commercial mandates these ends are substantially achieved by the complementary funding program for JCM projects. Moves to better interline the two programs, with an emphasis on funding criteria that makes reference to a project’s cost of emissions abatement, should enhance the environmental effectiveness (of the two programs) provided priority is given to this criterion over other (diplomatic/commercial) criteria. The introduction of an emissions trading scheme in Australia in the future (or extension of the current safeguard mechanism) would be expected to provide a market for carbon credits generated from offset schemes. Given that the current Australian offset scheme is solely domestic focused a case could be made to also introduce at that time a JCM type scheme that awarded credits to Australian entities engaged in foreign joint ventures achieving low cost emissions reductions.

Mitigation of ammonia and greenhouse gas emissions from stored cattle slurry using acidifiers and chemical amendments

Cattle and cow slurry storage is a significant source of agricultural greenhouse gas (GHG) and ammonia (NH3) emissions. While acidification has been demonstrated to significantly reduce these emissions, a knowledge gap exists to identify a range of chemical amendments that are safe, suitable and cost effective to mitigate both GHG and NH 3 gases simultaneously. The current study showed that ferric chloride, sulphuric acid, alum and acetic acid were extremely effective at abating emissions, with NH 3 reduced by 96%, 85%, 82% and 73%, respectively. In terms of methane (CH 4 ), ferric chloride, alum, sulphuric acid and acetic acid reduced emissions by 98%, 96%, 95% and 94%, respectively. Previous studies have found that the reduction of >pH 6 can inhibit the release of these gases; however, the effectiveness can vary depending on each amendment's composition. The cost benefit analysis, assessed the amendments in terms of both gaseous emissions reduction and net cost. Sulphuric acid, acetic acid, ferric chloride and alum ranked best, respectively. Currently, the cost of implementing these amendments is, at best, cost neutral. Therefore, incentivising chemical amendments for the abatement of GHG and NH 3 gases from slurry storage is needed. This incubation experiment is an effective means of pre-screening amendments before they are explored at pilot or full scale with subsequent field application. Future research should consider the assessment of cheaper on- and off-farm alternative waste streams as slurry amendment. • Acidification of cattle and dairy slurry was investigated. • Target pH of 5.5 resulted in a 96% reduction in NH 3 and 98% reduction in CH 4 . • Ferric chloride reductions were independent of pH value. • Cost analysis revealed financial incentives are needed for scaled implementation.

A Review of Emission Reduction Potential and Cost Savings through Forest Carbon Sequestration

A Review of Emission Reduction Potential and Cost Savings through Forest Carbon Sequestration

Incentive model for enterprises based on carbon emission intensity

A pilot scheme for a carbon emissions trading market has been launched in China. Some problems within the market include insufficient incentives, inefficient emissions reduction, and inequitable distribution. While previous studies adopted a state or provincial level perspective to examine such issues, little research has focused on enterprises at a business level. This article proposes a new incentive model that aims to resolve these problems. This model was developed while considering the carbon emission intensity of enterprises and cooperative game theory. According to the advanced value and average value of carbon emission intensity, the model classifies enterprises into three regions. The quota in the second year is related to its own emission intensity and the number of enterprises located in the region, which not only stimulates the enthusiasm of the enterprise to reduce emissions, but also serves to encourage more enterprises to participate in emission reductions. This article presents a study of 16 textile enterprises in Shandong Province. Depending on the model's calculation, the quota can be redistributed. Different emission intensity brings different emission reduction costs, which can intuitively show different responsibilities. The result is fairer and more reasonable than distributions that are based on a historical emissions quota.

What Role Should Government Play in the Personal Carbon Trading Market: Motivator or Punisher?

With increasing downstream carbon emissions, the implementation of a personal carbon trading scheme is urgently required. In order to facilitate the progress, government departments are supposed to adopt a motivating or punitive policy to make guidance for downstream carbon emissions reduction. This study determined and verified the evolutionarily stable strategies (ESSs) of government departments and individuals whose carbon emissions exceeded the initial carbon allowance (CEEICA individuals) by using the evolutionary game and numerical simulation methods, respectively. The findings show that the ESS of government departments is always a punitive policy during the variation of strategies of CEEICA individuals. The ESS of CEEICA individuals is an active plan when the added cost (the difference between emissions reduction cost and trading earning) is less than the carbon tax; otherwise, it is a passive plan. Furthermore, the rate of convergence can be significantly influenced by the probabilistic distances between initial strategies and the ESSs. On the basis of these findings, this study suggested implementing a “punishment first, motivation-supplemented” policy, and developing a stable operational mechanism for a personal carbon trading market.

ECOEFICIÊNCIA E PREÇO SOMBRA DAS EMISSÕES DE GASES DE EFEITO ESTUFA NA SUINOCULTURA BRASILEIRA

Nas últimas décadas a suinocultura tornou-se uma importante atividade para o agronegócio brasileiro, com contribuições para o desenvolvimento econômico do país. Contudo, esse setor apresenta um grande potencial poluente, com um elevado custo ambiental relacionado ao processo produtivo. Neste contexto, o presente trabalho tem como objetivo estimar a ecoeficiência na produção brasileira de suínos, os preços sombra e os custos totais das emissões de Gases de Efeito Estufa (GEE). O método utilizado para atingir o objetivo proposto foi a Análise Envoltória de Dados combinada com o método de Funções Distâncias Direcionais. Foram estabelecidos dois padrões de dados na pesquisa dos municípios produtores de suínos em nove Estados brasileiros. Para o Padrão 1, em média, os municípios podem elevar a produção em 36,9% e reduzir as emissões de CO2 e na mesma proporção, com a mesma quantidade de insumos. Para o Padrão 2 esse valor foi de 47,22%. Os preços sombra médios ficaram em R$ 3.539,81 no Padrão 1 e R$ 3.677,07 no Padrão 2. As estimativas dos custos totais da redução das emissões de CO2 e foram de R$ 1,37 bilhões, o equivalente a 468% da produção em 2006, para o Padrão 1, e R$ 1,42 bilhões, correspondente a 486% da produção em 2006, para o Padrão 2. Portanto, constatou-se que a incorporação desses custos é praticamente inviável, pois levaria à descontinuidade das propriedades. Desse modo, a pesquisa indica a necessidade de redesenhar um sistema dissuasivo de punições e incentivos, que considere os preços sombra para que os produtores de suínos internalizem as externalidades negativas e busquem compensações para as ações que reduzam as emissões ou utilizem tecnologias mais limpas. A principal contribuição do trabalho é a inclusão da análise de eficiência considerando a variável ambiental, questão ainda pouco abordada na literatura.