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Financial allocation strategy for the regional pollution abatement cost of reducing sulfur dioxide emissions in the thermal power sector in China

  • Kaneko, Shinji
  • Fujii, Hidemichi
  • Sawazu, Naoya
  • Fujikura, Ryo

This study explores empirical evidence for two hypotheses through a macro productivity analysis using the nonparametric directional distance function approach applied to the thermal power sector. The first hypothesis is that the marginal abatement cost has significantly declined in recent years mainly due to domestic flue gas desulfurization technology in China, which has become available at a reasonable cost. The second is the existence of a certain budget scale, which, with policy intervention, would have significant outcomes. These hypotheses are successfully addressed through the findings that the marginal abatement cost in 2006 had declined by half since 2003 and that the strategic allocation of 10 billion yuan for SO2 emissions abatement would result in an additional 550,000 tonnes of SO2 reductions.

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Article provided by Elsevier in its journal Energy Policy.

Volume (Year): 38 (2010)
Issue (Month): 5 (May)
Pages: 2131-2141

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Handle: RePEc:eee:enepol:v:38:y:2010:i:5:p:2131-2141
Contact details of provider: Web page: http://www.elsevier.com/locate/enpol

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  1. M N, Murty & Kumar, Surender & Dhavala, Kishore, 2006. "Measuring Environmental Efficiency of Industry: A Case Study of Thermal Power Generation in India," MPRA Paper 1693, University Library of Munich, Germany.
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