NDLI: How China’s current energy pricing mechanisms will impact its marginal carbon abatement costs?

Content Provider	Springer Nature Link
Author	Yao, Yun Fei Liang, Qiao Mei Yang, Dong Wei Liao, Hua Wei, Yi Ming
Copyright Year	2014
Abstract	Economic and social costs and benefits are critical factors affecting greenhouse gas abatement activities. Recognizing that energy prices are one of the most important factors influencing abatement costs, this study improved the basic China Energy and Environmental Policy Analysis (CEEPA) model by introducing a current energy pricing mechanism for China. The improved model was applied to generate marginal abatement cost (MAC) curves for China including the current energy pricing mechanism and to analyze MACs for the whole country and main abatement sectors in China under different energy pricing mechanisms. The results show that China MACs are sensitive to pricing mechanisms for electricity and refined oil. Ignoring the current regulation of these prices will lead to MAC underestimation, and price liberalization of these two energy sources could lead to a decrease in China MACs. Under a 50 % emission reduction target, if the electricity price regulation is ignored, the China MAC is underestimated by almost 16 %. Energy pricing reforms will lead to variations in sectoral abatement costs and overall abatement potential, and these impacts are projected to be large in the electricity sector. Under a 50 % reduction target, if the electricity price regulation is liberalized, MAC for the electricity sector nearly will decrease 50 %.
Starting Page	799
Ending Page	821
Page Count	23
File Format	PDF
ISSN	13812386
Journal	Mitigation and Adaptation Strategies for Global Change
Volume Number	21
Issue Number	6
e-ISSN	15731596
Language	English
Publisher	Springer Netherlands
Publisher Date	2014-11-19
Publisher Place	Dordrecht
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Climate change Computable general equilibrium Energy pricing Marginal abatement cost Mitigation policy Atmospheric Sciences Climate Change Management and Policy Environmental Management
Content Type	Text
Resource Type	Article
Subject	Ecology Global and Planetary Change

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