IDEAS home Printed from https://ideas.repec.org/p/ags/aaea16/235742.html
   My bibliography  Save this paper

Abatement costs of Emissions from Crop Residue Burning in major crop producing regions of China: Balancing food security with the environment

Author

Listed:
  • Hou, Lingling
  • Hoag, Dana
  • Keske, Catherine

Abstract

This paper estimates the shadow price of CO2 from burning crop residue in the Chinese agricultural sector and explores the policy implications for decision makers. Using a parametric translog directional distance function, we evaluate the technical efficiency and shadow prices of CO2 reduction for 7 major maize provinces in China from 1996-2013. Our results show that crop yield, cost of total inputs, and percentage of burnt crop residue account for 30%, 10% and 20% of the inefficiency, respectively. The shadow price of CO2 from burning crop residue is estimated to range from 0-1.368 yuan/ha (or US$210.5/t) with an average of 0.496yuan/kg (or US$76/t). Further analysis indicates that the average efficiency will increase by 9% if conservation practices are adopted by assuming 10% decrease in yield and 50% decrease in burnt crop residue under conservation practices compared to conventional practices. The shadow prices in these two cases imply that the whole society will benefit if the government spends less than 201 yuan/ha to promote adoption of conservation practices. This government offset would compensate farmers for yield reductions in favor of implementing conservation practices that would substantially reduce CO2 emissions.

Suggested Citation

  • Hou, Lingling & Hoag, Dana & Keske, Catherine, 2016. "Abatement costs of Emissions from Crop Residue Burning in major crop producing regions of China: Balancing food security with the environment," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235742, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea16:235742
    as

    Download full text from publisher

    File URL: http://ageconsearch.umn.edu/record/235742/files/AAEA-draft%202016-05-24-hou-keske-submitted%20to%20AAEA.pdf
    Download Restriction: no

    More about this item

    Keywords

    Agricultural and Food Policy; Environmental Economics and Policy; Production Economics;

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ags:aaea16:235742. 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: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/aaeaaea.html .

    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.

    We have no references for this item. You can help adding them by using 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.