TY - JOUR
T1 - Financial allocation strategy for the regional pollution abatement cost of reducing sulfur dioxide emissions in the thermal power sector in China
AU - Kaneko, Shinji
AU - Fujii, Hidemichi
AU - Sawazu, Naoya
AU - Fujikura, Ryo
N1 - Funding Information:
This is supported by micro evidence in the case of one Japanese Official Development Assistance project in Jiangxi Province. The Jiangxi Jiujiang Power Plant Phase III Extension Project (JJPP-III) was planned in 1992 and the governments of Japan and China signed the loan agreement in 1994. At the time two new power plants (with 350 MW turbine-generator units, respectively) and their auxiliary facilities were planned. The provision of flue gas desulfurization (FGD) equipment was postponed because of the high initial costs. The environment assessment report suggested that as long as low-sulfur coal is used, ambient air quality would meet the required level of environmental standards at that time. Therefore, only the space for the future installation of the FGD equipment was secured to prepare for anticipated stricter requirements in future environmental quality standards. In 2006, after the new plants had been operating for one year, one of the plants installed the FGD equipment using its own funds, because domestic technology had become available and the cost of the FGD equipment had accordingly declined significantly. The power company will continue to install FGD equipment in other existing plants.
Copyright:
Copyright 2010 Elsevier B.V., All rights reserved.
PY - 2010/5
Y1 - 2010/5
N2 - 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.
AB - 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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U2 - 10.1016/j.enpol.2009.06.005
DO - 10.1016/j.enpol.2009.06.005
M3 - Article
AN - SCOPUS:77649182793
SN - 0301-4215
VL - 38
SP - 2131
EP - 2141
JO - Energy Policy
JF - Energy Policy
IS - 5
ER -