Estimating the Marginal Abatement Cost of Carbon Emissions: A Non-Radial Efficiency Analysis

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Abstract:

This paper employed a non-radial efficiency analysis technique, namely slacks-based measure, to calculate the marginal abatement cost of carbon emissions. The study was concerning ten manufacturing sectors that have been included in Shanghai’s pilot emission trading scheme. The empirical result shows the overall weighted average marginal abatement cost is 839.3 Yuan/ton. It also indicates that the marginal abatement cost has a negative relationship with carbon emissions. Additionally, the marginal abatement costs vary across the sample sectors. Policy implications are presented based on above results.

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Advanced Materials Research (Volumes 1073-1076)

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2473-2476

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December 2014

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© 2015 Trans Tech Publications Ltd. All Rights Reserved

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