Pollution from the electric power sector in Japan and efficient pollution reduction
Under the scheme of the Kyoto Protocol, there are plans for the efficient reduction of carbon dioxide emissions. In the electric power sector, nuclear power generation, which emits no carbon dioxide in the process of generating electricity, has come under scrutiny. However, this energy produces a new environmental issue: the disposal of radioactive waste. First, we derive shadow prices of carbon dioxide and low-level waste as marginal abatement costs in the case of the electric power sector in Japan, employing a directional output distance function. It is found that the shadow prices are US$39 per tonne for carbon dioxide and US$1531 per liter for low-level waste. Secondly, we calculate the indirect Morishima elasticity between carbon dioxide and low-level waste in order to identify their substitutability, and it is found that the substitution of low-level waste for carbon dioxide is easier than the reverse. This result suggests that, with the amount of generated electricity fixed, carbon dioxide can be substituted more easily by low-level waste when the relative price of carbon dioxide increases, for example, as a result of implementation of a carbon dioxide tax or an emissions trading system.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- David Anthoff & Richard S.J. Tol, 2007.
"On International Equity Weights and National Decision Making on Climate Change,"
2007.55, Fondazione Eni Enrico Mattei.
- Anthoff, David & Tol, Richard S.J., 2010. "On international equity weights and national decision making on climate change," Journal of Environmental Economics and Management, Elsevier, vol. 60(1), pages 14-20, July.
- David Anthoff & Richard S.J. Tol, 2007. "On International Equity Weights And National Decision Making On Climate Change," Working Papers FNU-127, Research unit Sustainability and Global Change, Hamburg University, revised Feb 2007.
- David Anthoff & Richard S. J. Tol, 2008. "On International Equity Weights and National Decision Making on Climate Change," CESifo Working Paper Series 2373, CESifo Group Munich.
- Anthoff, David & Tol, Richard S. J., 2011. "On International Equity Weights and National Decision Making on Climate Change," Papers RB2010/4/2, Economic and Social Research Institute (ESRI).
- Rolf Färe & Carlos Martins-Filho & Michael Vardanyan, 2010. "On functional form representation of multi-output production technologies," Journal of Productivity Analysis, Springer, vol. 33(2), pages 81-96, April.
- Gollop, Frank M & Roberts, Mark J, 1985. "Cost-minimizing Regulation of Sulfur Emissions: Regional Gains in Electric Power," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 81-90, February.
- Fare, Rolf & Grosskopf, Shawna & Noh, Dong-Woon & Weber, William, 2005. "Characteristics of a polluting technology: theory and practice," Journal of Econometrics, Elsevier, vol. 126(2), pages 469-492, June.
- Park, Hojeong & Lim, Jaekyu, 2009. "Valuation of marginal CO2 abatement options for electric power plants in Korea," Energy Policy, Elsevier, vol. 37(5), pages 1834-1841, May.
- Pizer, William & Newell, Richard, 2000.
"Discounting the Distant Future: How Much Do Uncertain Rates Increase Valuations?,"
dp-00-45, Resources For the Future.
- Newell, Richard G. & Pizer, William A., 2003. "Discounting the distant future: how much do uncertain rates increase valuations?," Journal of Environmental Economics and Management, Elsevier, vol. 46(1), pages 52-71, July.
- Coggins, Jay S. & Swinton, John R., 1996.
"The Price of Pollution: A Dual Approach to Valuing SO2Allowances,"
Journal of Environmental Economics and Management,
Elsevier, vol. 30(1), pages 58-72, January.
- JAY S. COGGINS & John R. Swinton, 1994. "The Price of Pollution: A Dual Approach to Valuing SO2 Allowances," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 378, Wisconsin-Madison Agricultural and Applied Economics Department.
- Grosskopf, S. & Hayes, K. & Hirschberg, J., 1995. "Fiscal stress and the production of public safety: A distance function approach," Journal of Public Economics, Elsevier, vol. 57(2), pages 277-296, June.
- David Pearce, 2003. "The Social Cost of Carbon and its Policy Implications," Oxford Review of Economic Policy, Oxford University Press, vol. 19(3), pages 362-384.
- Tol, Richard S. J., 2005. "The marginal damage costs of carbon dioxide emissions: an assessment of the uncertainties," Energy Policy, Elsevier, vol. 33(16), pages 2064-2074, November.
- Manish Gupta, 2006. "Costs of Reducing Greenhouse Gas Emissions: A Case Study of India’s Power Generation Sector," Working Papers 2006.147, Fondazione Eni Enrico Mattei.
- Azar, Christian & Sterner, Thomas, 1996. "Discounting and distributional considerations in the context of global warming," Ecological Economics, Elsevier, vol. 19(2), pages 169-184, November.
- Fare, Rolf & Grosskopf, Shawna & Weber, William L., 2006. "Shadow prices and pollution costs in U.S. agriculture," Ecological Economics, Elsevier, vol. 56(1), pages 89-103, January.
- Blackorby, Charles & Russell, R Robert, 1981. "The Morishima Elasticity of Substitution; Symmetry, Constancy, Separability, and Its Relationship to the Hicks and Allen Elasticities," Review of Economic Studies, Wiley Blackwell, vol. 48(1), pages 147-58, January.
- Kwon, Oh Sang & Yun, Won-Cheol, 1999. "Estimation of the marginal abatement costs of airborne pollutants in Korea's power generation sector," Energy Economics, Elsevier, vol. 21(6), pages 545-558, December.
- Fare, Rolf, et al, 1993. "Derivation of Shadow Prices for Undesirable Outputs: A Distance Function Approach," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 374-80, May.
- Färe, Rolf & Grosskopf, Shawna & Hayes, Kathy J. & Margaritis, Dimitris, 2008. "Estimating demand with distance functions: Parameterization in the primal and dual," Journal of Econometrics, Elsevier, vol. 147(2), pages 266-274, December.
- Rezek, Jon P. & Campbell, Randall C., 2007. "Cost estimates for multiple pollutants: A maximum entropy approach," Energy Economics, Elsevier, vol. 29(3), pages 503-519, May.
- Blackorby, Charles & Russell, R Robert, 1989. "Will the Real Elasticity of Substitution Please Stand Up? (A Comparison of the Allen/Uzawa and Morishima Elasticities)," American Economic Review, American Economic Association, vol. 79(4), pages 882-88, September.
When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:34:y:2012:i:4:p:1124-1130. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.