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Marginal Costs of Carbon Dioxide Abatement: Empirical Evidence from Cross-Country Analysis

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  • David Maradan
  • Anatoli Vassiliev

Abstract

This paper examines how the marginal CO2 abatement costs vary throughout stages of economic development, and how these variations may be related to the Environmental Kuznets Curve (EKC) hypothesis. By assuming the existence of a technological link between production of desirable outputs and pollution, shadow prices of carbon emissions are estimated for 76 developing and developed countries. The results show that immediate carbon reductions are more costly in terms of desirable output forgone in the developing economies than in the developed ones. Several interpretations of this finding are finally proposed.

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Bibliographic Info

Article provided by Swiss Society of Economics and Statistics (SSES) in its journal Swiss Journal of Economics and Statistics.

Volume (Year): 141 (2005)
Issue (Month): III (September)
Pages: 377-410

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Handle: RePEc:ses:arsjes:2005-iii-4

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Related research

Keywords: Carbon dioxide emissions; Marginal abatement costs; Environmental Kuznets Curve; Directional distance function;

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References

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Citations

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Cited by:
  1. Rahman, Shaikh M. & Larson, Donald F. & Dinar, Ariel, 2012. "The cost structure of the clean development mechanism," Policy Research Working Paper Series 6262, The World Bank.
  2. Hannes Egli, 2005. "A new approach to pollution modelling in models of the environmental Kuznets curve," CER-ETH Economics working paper series 05/39, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
  3. Wu, Pei-Ing & Chen, Chai Tzu & Cheng, Pei-Ching & Liou, Je-Liang, 2014. "Climate game analyses for CO2 emission trading among various world organizations," Economic Modelling, Elsevier, vol. 36(C), pages 441-446.
  4. Limin DU & Aoife Hanley & Chu WEI, 2013. "Estimating the Marginal Abatement Costs of Carbon Dioxide Emissions in China: A Parametric Analysis," Kiel Working Papers 1883, Kiel Institute for the World Economy.
  5. Hannes Egli & Thomas M. Steger, 2004. "A Dynamic Model of the Environmental Kuznets Curve : Turning Point and Public Poliy," CER-ETH Economics working paper series 04/33, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich, revised May 2005.
  6. Wu, Pei-Ing & Chen, Chai Tzu & Liou, Je-Liang, 2013. "The meta-technology cost ratio: An indicator for judging the cost performance of CO2 reduction," Economic Modelling, Elsevier, vol. 35(C), pages 1-9.

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