Global resilience to climate change: Examining global economic and environmental performance resulting from a global carbon dioxide market

Badau, Flavius; Färe, Rolf; Gopinath, Munisamy

doi:10.1016/j.reseneeco.2016.05.002

Cited by 20 publications

(15 citation statements)

References 22 publications

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“…Chen 30 sets a carbon tax rate based on the MACs of CO 2 and reveals that the levy of a carbon tax has a positive influence on industry outputs in the long term. Badau et al 31 reallocate CO 2 optimally based on the MACs, and then establish an international cap-and-trade carbon market.…”

Section: Application Of Pollutants' Macsmentioning

confidence: 99%

Exploring the focus of future CO₂ emission reduction in China's industrial sectors

2021

Greenhouse Gases

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Marginal abatement cost (MAC) of CO 2 plays a fundamental role in formulating industry environmental policies. In this paper, we measured the MACs of energy-related CO 2 among 40 industrial sectors during 2005-2017 based on parametric directional distance function, and there were significant differences between the results. Then, industrial sectors were classified into four categories, and we found 'low carbon intensity' type (type I, II) has higher MACs of CO 2 than 'high carbon intensity' type (type III, IV); under the same level of carbon intensity, industrial sectors with lower CO 2 emissions have higher MACs (type I>II, type III>IV). Moreover, capital intensity, technology progress, and ownership structure have positive effects on MACs, while energy intensity and energy consumption structure are negatively correlated with MACs. The research suggests: (1) The 'double control' of carbon intensity and CO 2 emissions is necessary, however, reducing carbon intensity is still the primary target, and CO 2 emission should also be controlled appropriately at the present stage. (2) Industrial sectors in type IV should be chosen as key industrial sectors to be supervised. (3) China should consider industry characteristics and implement "common but differentiated" emission reduction policies.

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Section: Application Of Pollutants' Macsmentioning

confidence: 99%

Exploring the focus of future CO₂ emission reduction in China's industrial sectors

2021

Greenhouse Gases

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“…() to estimate trade‐offs between electricity production versus air pollution; by Badau et al. () to estimate trade‐offs between country‐level GDP and CO 2 emissions; and by Majiwa et al. () to estimate agricultural productivity in sub‐Saharan Africa when greenhouse gas emissions are present.…”

Section: The Modelmentioning

confidence: 99%

The opportunity cost of preserving the Brazilian Amazon forest

Silva

Perrin

Fulginiti

2019

Agricultural Economics

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We estimate the trade-off between forest preservation and agricultural production for the Legal Amazon region, using census and deforestation data for municipalities in 2006. We use a directional distance function to represent the production possibility frontier, and then calculate the shadow price of reducing deforestation in terms of agricultural income foregone. Results indicate that, on average, to preserve 1 ha of forest, $797 in annual agricultural GDP must be foregone. Using a discount rate of 10% and average forest carbon density of 132 tons per hectare, these results imply an average shadow price of $16 per ton of CO 2 permanently sequestered.inductively, by basing their conclusions on budget estimates of the per-hectare returns from one or a combination of agricultural activities at one or more representative locations. These budget estimates are then combined in some fashion to estimate the foregone returns from any forest land in the region that is preserved rather than converted to agriculture. Income is assumed to continue being foregone for 30 years or more, as the forest is maintained. There are many sources of potential error in such an approach that might lead to inaccurate estimates of the foregone returns: the locations considered may not be representative, the budget estimates for agricultural activities at those locations may be inaccurate, and the set of activities may be incomplete or weighted inappropriately.Given these potential weaknesses in previous estimates of agricultural income foregone from reduced deforestation, we introduce in this study a more deductive approach to complement the estimates obtained from these inductive approaches. We observe, across municipalities, how agricultural Gross Domestic Product -GDP (AGDP) changes when forests are converted, and from an econometric analysis of such data, we estimate the trade-offs between AGDP and forest preservation and thus the implied trade-off between AGDP and carbon sequestered. Our approach provides novel and plausible estimates of the cost to Brazilian agriculture of reducing CO 2 emissions by reducing deforestation. Our average estimate of $16/t of CO 2 ($12/t median value) maintained in forest sequestration is higher than most previous opportunity cost estimates.

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“…These models can be further divided into parametric and non-parametric kinds. Badau [9] established a parametric environmental production function with the pollutant as undesirable output, then measured the marginal effect of pollution with its partial derivative. Park and Lim [10] applied a distance function based on transcendental logarithm to estimate the CO 2 shadow price for thermal power plants in Korea.…”

Section: Literature Reviewmentioning

confidence: 99%

Estimating Regional Shadow Prices of CO2 in China: A Directional Environmental Production Frontier Approach

Lin

2019

Sustainability

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Shadow price of carbon dioxide (CO2) plays a fundamental role in evaluating CO2 abatement cost and formulating regional environmental policies. In this study, CO2 shadow prices are estimated in 29 provinces of China from 2006 to 2015. Directional Environmental Production Frontier Function (DEPFF) measures the distance between actual production points and the effective production frontier surface, which yields the shadow prices of CO2 emission. With the relationship between CO2 emission and Gross Domestic Product (GDP) growth which is encapsulated in the shadow price, the provinces are classified into three groups: acceleration zone, buffer zone, and deceleration zone. The acceleration zone is characterized by a smaller emission growth driving a greater economic growth, and the provincial average price of CO2 is 184.16 US$/ton. In the buffer zone, a significant emission increase brings about less economic growth with the average shadow price at 86.57 US$/ton. In the deceleration zone, a high growth rate of CO2 emissions is accompanied with an economic output decrease, which implies that the shadow price of CO2 should be negative, and the mean value is −200.7 US$/ton. As the CO2 abatement potential differs significantly across provinces, the environmental policy and CO2 reduction targets should be region-specific.

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Global resilience to climate change: Examining global economic and environmental performance resulting from a global carbon dioxide market

Cited by 20 publications

References 22 publications

Exploring the focus of future CO₂ emission reduction in China's industrial sectors

Exploring the focus of future CO₂ emission reduction in China's industrial sectors

The opportunity cost of preserving the Brazilian Amazon forest

Estimating Regional Shadow Prices of CO2 in China: A Directional Environmental Production Frontier Approach

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Global resilience to climate change: Examining global economic and environmental performance resulting from a global carbon dioxide market

Cited by 20 publications

References 22 publications

Exploring the focus of future CO2 emission reduction in China's industrial sectors

Exploring the focus of future CO2 emission reduction in China's industrial sectors

The opportunity cost of preserving the Brazilian Amazon forest

Estimating Regional Shadow Prices of CO2 in China: A Directional Environmental Production Frontier Approach

Contact Info

Product

Resources

About

Exploring the focus of future CO₂ emission reduction in China's industrial sectors

Exploring the focus of future CO₂ emission reduction in China's industrial sectors