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Sustainability 2017, 9(6), 932; doi:10.3390/su9060932

CO2 Emission Performance, Mitigation Potential, and Marginal Abatement Cost of Industries Covered in China’s Nationwide Emission Trading Scheme: A Meta-Frontier Analysis

1
School of Business, Hohai University, West Focheng Road 8, Nanjing 211100, China
2
Collaborative Innovation Center for Coastal Development and Preservation, Xikang Road 1, Nanjing 210098, China
*
Author to whom correspondence should be addressed.
Academic Editor: Vincenzo Torretta
Received: 24 April 2017 / Revised: 30 May 2017 / Accepted: 1 June 2017 / Published: 2 June 2017
(This article belongs to the Section Sustainable Engineering and Science)
View Full-Text   |   Download PDF [2702 KB, uploaded 2 June 2017]   |  

Abstract

China’s nationwide emission trading scheme (CN-ETS) is scheduled to be launched in 2017. It is of great urgency and necessity to obtain a good understanding of the participating sectors of CN-ETS in terms of energy utilization and CO2 emissions. In this regard, it should be noted that the findings may be biased without taking industry heterogeneity into consideration. To this end, a meta-frontier framework with the directional distance function is employed to estimate the CO2 emission performance (CEP), mitigation potential (MP), and marginal abatement cost (MAC) at sector levels under the meta-frontier and the group-frontier. The results indicate that significant disparities in the CEP, MP, and MAC exist under both frontiers among various sectors, and the sectoral distributions of CEP, MP, and MAC are found to be different between the two frontiers. Additionally, the differences between the two frontiers in terms of CEP, MP, and MAC are considerable, and exhibit unequal distributions among these sectors. Notably, MAC under both frontiers and the difference between them are found to be significantly correlated with the carbon intensity. Finally, policy implications are provided for the government and participating enterprises, respectively. View Full-Text
Keywords: China’s nationwide emission trading scheme; directional distance function; meta-frontier analysis; CO2 emission performance; mitigation potential; marginal abatement cost China’s nationwide emission trading scheme; directional distance function; meta-frontier analysis; CO2 emission performance; mitigation potential; marginal abatement cost
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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MDPI and ACS Style

Xing, Z.; Wang, J.; Zhang, J. CO2 Emission Performance, Mitigation Potential, and Marginal Abatement Cost of Industries Covered in China’s Nationwide Emission Trading Scheme: A Meta-Frontier Analysis. Sustainability 2017, 9, 932.

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