IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v51y2015icp609-621.html
   My bibliography  Save this article

Revealing the political decision toward Chinese carbon abatement: Based on equity and efficiency criteria

Author

Listed:
  • Ni, Jinlan
  • Wei, Chu
  • Du, Limin

Abstract

China's economic reform over the past 30years has allowed the free market to drive economic development. However, government still plays a key role in the energy sector by allocating energy conservation and emissions abatement. How does the government make an equity decision as a tradeoff to market efficiency? This is an unanswered question. The purpose of this paper is to illustrate the government's preference toward equity and efficiency. Using the provincial level CO2 intensity allocation data, we investigate the political decision that the government made based on the equity and efficiency criteria. We find that the equity index plays a more important role than the efficiency index in determining the CO2 intensity target. In addition, political factors such as social stability are found to be important factors.

Suggested Citation

  • Ni, Jinlan & Wei, Chu & Du, Limin, 2015. "Revealing the political decision toward Chinese carbon abatement: Based on equity and efficiency criteria," Energy Economics, Elsevier, vol. 51(C), pages 609-621.
  • Handle: RePEc:eee:eneeco:v:51:y:2015:i:c:p:609-621
    DOI: 10.1016/j.eneco.2015.08.027
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988315002510
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ades, Alberto & Chua, Hak B, 1997. "Thy Neighbor's Curse: Regional Instability and Economic Growth," Journal of Economic Growth, Springer, vol. 2(3), pages 279-304, September.
    2. ZhongXiang Zhang, 2011. "Assessing China’s carbon intensity pledge for 2020: stringency and credibility issues and their implications," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 13(3), pages 219-235, September.
    3. Rose, Adam, 1990. "Reducing conflict in global warming policy : The potential of equity as a unifying principle," Energy Policy, Elsevier, vol. 18(10), pages 927-935, December.
    4. Alesina, Alberto & Perotti, Roberto, 1996. "Income distribution, political instability, and investment," European Economic Review, Elsevier, vol. 40(6), pages 1203-1228, June.
    5. 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.
    6. 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.
    7. Criqui, Patrick & Mima, Silvana & Viguier, Laurent, 1999. "Marginal abatement costs of CO2 emission reductions, geographical flexibility and concrete ceilings: an assessment using the POLES model," Energy Policy, Elsevier, vol. 27(10), pages 585-601, October.
    8. Richerzhagen, Carmen & Scholz, Imme, 2008. "China's Capacities for Mitigating Climate Change," World Development, Elsevier, vol. 36(2), pages 308-324, February.
    9. Zhang, Zhongxiang, 2000. "Decoupling China's Carbon Emissions Increase from Economic Growth: An Economic Analysis and Policy Implications," World Development, Elsevier, vol. 28(4), pages 739-752, April.
    10. M. Murty & Surender Kumar & Kishore Dhavala, 2007. "Measuring environmental efficiency of industry: a case study of thermal power generation in India," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(1), pages 31-50, September.
    11. Dai, Hancheng & Masui, Toshihiko & Matsuoka, Yuzuru & Fujimori, Shinichiro, 2011. "Assessment of China's climate commitment and non-fossil energy plan towards 2020 using hybrid AIM/CGE model," Energy Policy, Elsevier, vol. 39(5), pages 2875-2887, May.
    12. Charnes, A. & Cooper, W. W. & Golany, B. & Seiford, L. & Stutz, J., 1985. "Foundations of data envelopment analysis for Pareto-Koopmans efficient empirical production functions," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 91-107.
    13. Stern, David I. & Jotzo, Frank, 2010. "How ambitious are China and India's emissions intensity targets?," Energy Policy, Elsevier, vol. 38(11), pages 6776-6783, November.
    14. Wang, Ke & Zhang, Xian & Wei, Yi-Ming & Yu, Shiwei, 2013. "Regional allocation of CO2 emissions allowance over provinces in China by 2020," Energy Policy, Elsevier, vol. 54(C), pages 214-229.
    15. Wei, Chu & Ni, Jinlan & Du, Limin, 2012. "Regional allocation of carbon dioxide abatement in China," China Economic Review, Elsevier, vol. 23(3), pages 552-565.
    16. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, December.
    17. Yi, Wen-Jing & Zou, Le-Le & Guo, Jie & Wang, Kai & Wei, Yi-Ming, 2011. "How can China reach its CO2 intensity reduction targets by 2020? A regional allocation based on equity and development," Energy Policy, Elsevier, vol. 39(5), pages 2407-2415, May.
    18. Adam Rose & Brandt Stevens & Jae Edmonds & Marshall Wise, 1998. "International Equity and Differentiation in Global Warming Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 12(1), pages 25-51, July.
    19. Du, Limin & Wei, Chu & Cai, Shenghua, 2012. "Economic development and carbon dioxide emissions in China: Provincial panel data analysis," China Economic Review, Elsevier, vol. 23(2), pages 371-384.
    20. Harald Winkler & Randall Spalding-Fecher & Lwazikazi Tyani, 2002. "Comparing developing countries under potential carbon allocation schemes," Climate Policy, Taylor & Francis Journals, vol. 2(4), pages 303-318, December.
    21. Phylipsen, G J M & Bode, J W & Blok, K & Merkus, H & Metz, B, 1998. "A Triptych sectoral approach to burden differentiation; GHG emissions in the European bubble," Energy Policy, Elsevier, vol. 26(12), pages 929-943, October.
    22. Guo, Xiao-Dan & Zhu, Lei & Fan, Ying & Xie, Bai-Chen, 2011. "Evaluation of potential reductions in carbon emissions in Chinese provinces based on environmental DEA," Energy Policy, Elsevier, vol. 39(5), pages 2352-2360, May.
    23. Perotti, Roberto & Alesina, Alberto, 1996. "Income Distribution, Political Instability, and Investment," Scholarly Articles 4553018, Harvard University Department of Economics.
    24. Zhang, Da & Rausch, Sebastian & Karplus, Valerie J. & Zhang, Xiliang, 2013. "Quantifying regional economic impacts of CO2 intensity targets in China," Energy Economics, Elsevier, vol. 40(C), pages 687-701.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tang, Pengcheng & Yang, Shuwang & Fu, Shuke, 2018. "Do political incentive affects China's land transfer in energy-intensive industries?," Energy, Elsevier, vol. 164(C), pages 550-559.
    2. Guo, Jin & Du, Limin & Wei, Chu, 2019. "Equity-efficiency trade-off in China's energy capping policy," Energy Policy, Elsevier, vol. 126(C), pages 57-65.
    3. Nielsen, Hana & Warde, Paul & Kander, Astrid, 2018. "East versus West: Energy intensity in coal-rich Europe, 1800–2000," Energy Policy, Elsevier, vol. 122(C), pages 75-83.

    More about this item

    Keywords

    China; Equity; Efficiency; Preference; Policy-maker;

    JEL classification:

    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • 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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:51:y:2015:i:c:p:609-621. 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: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/eneco .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.