A study on the CO2 marginal abatement cost of coal-fueled power plants: is the current price of China pilot carbon emission trading market rational?
This paper aims to analyze the trading mechanism of China pilot carbon emission trading market and figure out whether the current market price is rational and valid. By applying directional distance function and stochastic frontier analysis method, we estimated the CO2 marginal abatement cost of 92...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2020-05-01
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| Series: | Carbon Management |
| Subjects: | |
| Online Access: | http://dx.doi.org/10.1080/17583004.2020.1755596 |
| _version_ | 1797678437373050880 |
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| author | Chao Qi Yongrok Choi |
| author_facet | Chao Qi Yongrok Choi |
| author_sort | Chao Qi |
| collection | DOAJ |
| description | This paper aims to analyze the trading mechanism of China pilot carbon emission trading market and figure out whether the current market price is rational and valid. By applying directional distance function and stochastic frontier analysis method, we estimated the CO2 marginal abatement cost of 92 coal-fueled generators belonging to 27 power plants located in Shanghai which is one of the pilot carbon emission trading market cities in China. The result indicates that the market price will greatly affect the trading activities within carbon emission trading market. We conclude that the current market price is not rational for coal-fueled power industry which is high-carbon and high CO2 MAC industry. When the exchange of nationwide carbon trading market formally start, policymakers should impose carbon tax or carbon emission quota to adjust the market price and stimulate the CO2 emission reduction willingness of coal-fueled power plants. |
| first_indexed | 2024-03-11T22:59:46Z |
| format | Article |
| id | doaj.art-9a5a9bbc101f4c57a32a1f0c6581490c |
| institution | Directory Open Access Journal |
| issn | 1758-3004 1758-3012 |
| language | English |
| last_indexed | 2024-03-11T22:59:46Z |
| publishDate | 2020-05-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Carbon Management |
| spelling | doaj.art-9a5a9bbc101f4c57a32a1f0c6581490c2023-09-21T15:09:06ZengTaylor & Francis GroupCarbon Management1758-30041758-30122020-05-0111330331410.1080/17583004.2020.17555961755596A study on the CO2 marginal abatement cost of coal-fueled power plants: is the current price of China pilot carbon emission trading market rational?Chao Qi0Yongrok Choi1Shandong UniversityInha UniversityThis paper aims to analyze the trading mechanism of China pilot carbon emission trading market and figure out whether the current market price is rational and valid. By applying directional distance function and stochastic frontier analysis method, we estimated the CO2 marginal abatement cost of 92 coal-fueled generators belonging to 27 power plants located in Shanghai which is one of the pilot carbon emission trading market cities in China. The result indicates that the market price will greatly affect the trading activities within carbon emission trading market. We conclude that the current market price is not rational for coal-fueled power industry which is high-carbon and high CO2 MAC industry. When the exchange of nationwide carbon trading market formally start, policymakers should impose carbon tax or carbon emission quota to adjust the market price and stimulate the CO2 emission reduction willingness of coal-fueled power plants.http://dx.doi.org/10.1080/17583004.2020.1755596coal-fueled power plantmarginal abatement costcarbon emission trading marketchinastochastic frontier analysis |
| spellingShingle | Chao Qi Yongrok Choi A study on the CO2 marginal abatement cost of coal-fueled power plants: is the current price of China pilot carbon emission trading market rational? Carbon Management coal-fueled power plant marginal abatement cost carbon emission trading market china stochastic frontier analysis |
| title | A study on the CO2 marginal abatement cost of coal-fueled power plants: is the current price of China pilot carbon emission trading market rational? |
| title_full | A study on the CO2 marginal abatement cost of coal-fueled power plants: is the current price of China pilot carbon emission trading market rational? |
| title_fullStr | A study on the CO2 marginal abatement cost of coal-fueled power plants: is the current price of China pilot carbon emission trading market rational? |
| title_full_unstemmed | A study on the CO2 marginal abatement cost of coal-fueled power plants: is the current price of China pilot carbon emission trading market rational? |
| title_short | A study on the CO2 marginal abatement cost of coal-fueled power plants: is the current price of China pilot carbon emission trading market rational? |
| title_sort | study on the co2 marginal abatement cost of coal fueled power plants is the current price of china pilot carbon emission trading market rational |
| topic | coal-fueled power plant marginal abatement cost carbon emission trading market china stochastic frontier analysis |
| url | http://dx.doi.org/10.1080/17583004.2020.1755596 |
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