New Directions in Productivity Measurement and Efficiency Analysis
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New Directions in Productivity Measurement and Efficiency Analysis

Counting the Environment and Natural Resources

Edited by Tihomir Ancev, M. A.S. Azad and Francesc Hernández-Sancho

This book explores novel research perspectives on the intersection of environmental/natural resource economics and productivity analysis, emphasizing the link between productivity and efficiency measurement and environmental impacts. The purpose of the book is to present new approaches and methods for measuring environmentally adjusted productivity and efficiency, and for incorporating natural resources in standard national accounting practices. These methods are applicable in many contexts, including air and water pollution, climate change, green accounting, and environmental regulation
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Chapter 11: Estimating the cost of carbon abatement for China

Atakelty Hailu and Chunbo Ma


China is now the leading source of carbon emissions, and has become the subject of a growing number of studies attempting to estimate marginal carbon abatement costs using distance functions. Provincial-level data for China are used to estimate the functions using mathematical programming (deterministic frontier) and Bayesian methods (stochastic frontiers). Carbon abatement cost estimates are compared to values reported in the literature and to market prices for carbon. The Bayesian results are found to be lower and closer to observed market prices.

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