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

Shinji Kaneko, Hidemichi Fujii, Naoya Sawazu, Ryo Fujikura

Research output: Contribution to journalArticle

56 Citations (Scopus)

Abstract

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.

Original languageEnglish
Pages (from-to)2131-2141
Number of pages11
JournalEnergy Policy
Volume38
Issue number5
DOIs
Publication statusPublished - May 1 2010
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Energy(all)
  • Management, Monitoring, Policy and Law

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