@article{Ma:204973,
      recid = {204973},
      author = {Ma, Chunbo and Hailu, Atakelty},
      title = {The Marginal Abatement Cost of Carbon Emissions in China},
      address = {2015-05-21},
      number = {1784-2016-141874},
      series = {Working papers},
      pages = {32},
      month = {May},
      year = {2015},
      abstract = {There is an emerging literature estimating the marginal  cost of carbon mitigation in China using distance function  approaches; however, empirical estimates vary widely in  magnitude and variation, which undermines support for  policies to curb carbon emission. Applying three commonly  used distance functions to China’s provincial data from  2001 to 2010, we show that the variability can be partially  explained by the difference in the input/output coverage  and whether the estimated marginal abatement cost (MAC) is  conditional or unconditional. We also argue that the  substantial heterogeneity in abatement cost estimates could  be related to an economic interpretation that radial  measures reflect the short-run MACs while non-radial  measures reflect the long-run MACs. Our mean short-run MAC  for carbon is 20 US$ per tonne, an amount that is very  close to the carbon prices observed in China’s recently  launched pilot markets.},
      url = {http://ageconsearch.umn.edu/record/204973},
      doi = {https://doi.org/10.22004/ag.econ.204973},
}