Marginal CO2 abatement costs Findings from alternative shadow price estimates for Shanghai industrial sectors》.pdfVIP

Energy Policy 77 (2015) 109–117 Contents lists available at ScienceDirect Energy Policy journal homepage: /locate/enpol Marginal CO2 abatement costs: Findings from alternative shadow price estimates for Shanghai industrial sectors X. Zhou a, L.W. Fan b, P. Zhou a,n a College of Economics and Management Research Centre for Soft Energy Science, Nanjing University of Aeronautics and Astronautics, 29 Jiangjun Avenue, Nanjing 211106, China b Business School, Hohai University, 8 Focheng West Road, Nanjing 211100, China H I G H L I G H T S We estimate the shadow prices of CO2 emissions for Shanghais manufacturing sectors. Multiple distance function approaches are employed in the empirical analysis. Model selection indeed has a significant effect on the shadow price estimation. The CO2 shadow price and the carbon intensity have a negative relationship. a r t i c l e i n f o a b s t r a c t Article history: Shanghai, one of the most developed cities in China, is implementing a pilot regional carbon emission Received 5 September 2014 trading scheme. Estimating the marginal abatement costs of CO2 emissions for the industrial sectors Received in revised form covered in Shanghais emission trading scheme provides the government and participating firms useful 4 December 2014 information for devising compliance policies. This paper employs multiple distance function approaches Accepted 6 December 2014 Available online 17 December 2014 to estimating the shadow prices of C