Carbon emissions control policies in China's power generation sector
AbstractPurpose – The purpose of this paper is to examine the potential for emissions control policy using the example of the power generation sector in China. Design/methodology/approach – The analytical model is developed using a joint production function, where carbon emissions and electricity are jointly produced using capital and fossil fuel inputs. Abatement of emissions can be achieved by investment in production capital that improves the production efficiency or abatement capital that removes the emissions. The results are estimated using data from China's electricity generation sector. Findings – The analytical model shows that economic growth can be achieved while still keeping the emission stock at a stable level. The results show that the level of the tax required to stabilize emissions depends greatly on the efficiency of abatement activities. As an illustration of this result, one finding shows that the required emission tax would be reduced greatly from 16 to 5 yuan/ton of emission when the abatement technology is improved from removing 10 to 30 percent of emissions flow. Research limitations/implications – The lack of carbon capture and storage technology in the real-world limits the ability to estimate some of the results from the economic growth model. Originality/value – Unlike many other papers, the empirical analysis is based on conditions from the economic model. In contrast to previous work that models emissions as an input into the production process, the model and estimation are consistent with the joint nature of electricity and emissions production. JEL classification: Q54, Q56, Q58
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Bibliographic InfoArticle provided by Emerald Group Publishing in its journal China Agricultural Economic Review.
Volume (Year): 3 (2011)
Issue (Month): 3 (September)
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Find related papers by JEL classification:
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
- Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
- Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jesus Felipe & Rana Hasan & J. S. L. McCombie, 2004.
"Correcting For Biases When Estimating Production Functions: An Illusion Of The Laws Of Algebra?,"
CAMA Working Papers
2004-13, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
- Jesus Felipe & Rana Hasan & J. S. L. McCombie, 2008. "Correcting for biases when estimating production functions: an illusion of the laws of algebra?," Cambridge Journal of Economics, Oxford University Press, vol. 32(3), pages 441-459, May.
- Hartman, Richard & Kwon, O-Sung, 2005. "Sustainable growth and the environmental Kuznets curve," Journal of Economic Dynamics and Control, Elsevier, vol. 29(10), pages 1701-1736, October.
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