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Shadow prices of direct and overall carbon emissions in China's construction industry: A parametric directional distance function-based sensitive estimation
Beijing Inst Technol, Ctr Energy & Environm Policy Res, Beijing, Peoples R China.;Beijing Inst Technol, Sch Management & Econ, Beijing, Peoples R China.;Beijing Key Lab Energy Econ & Environm Management, Beijing, Peoples R China.;Sustainable Dev Res Inst Econ & Soc Beijing, Beijing, Peoples R China..
Beijing Inst Technol, Ctr Energy & Environm Policy Res, Beijing, Peoples R China.;Beijing Inst Technol, Sch Management & Econ, Beijing, Peoples R China..
Beijing Inst Technol, Ctr Energy & Environm Policy Res, Beijing, Peoples R China.;Beijing Inst Technol, Sch Management & Econ, Beijing, Peoples R China.;Beijing Key Lab Energy Econ & Environm Management, Beijing, Peoples R China.;Sustainable Dev Res Inst Econ & Soc Beijing, Beijing, Peoples R China..
KTH, School of Engineering Sciences in Chemistry, Biotechnology and Health (CBH), Chemical Engineering, Energy Processes.ORCID iD: 0000-0001-9129-7265
2018 (English)In: Structural Change and Economic Dynamics, ISSN 0954-349X, E-ISSN 1873-6017, Vol. 47, p. 180-193Article in journal (Refereed) Published
Abstract [en]

Construction industry, together with building materials industries supplying it, is one of China's largest emitters of CO2. Structural change in construction industry has been promoted to mitigate CO2. This paper estimates CO2 shadow price of construction industry and its supporting materials industries in China so as to help them to mitigate CO2 cost-effectively. A parametric directional distance function model, taking into account all possible directional vectors, is applied to address issues regarding arbitrary selection of direction that will affect estimation of shadow price. Results show that there is larger potential for CO2 reduction in supporting material industries than in construction industry itself and shadow price of overall CO2 is much lower than that of direct CO2. The existence of enlarging heterogeneity in shadow prices among different regions provides strong support for introducing a national carbon trading market, thereby helping construction industry and building materials industries to reduce their abatement costs.

Place, publisher, year, edition, pages
ELSEVIER SCIENCE BV , 2018. Vol. 47, p. 180-193
Keywords [en]
Abatement cost, Building material industry, Construction industry, Shadow price
National Category
Energy Engineering
Identifiers
URN: urn:nbn:se:kth:diva-241216DOI: 10.1016/j.strueco.2018.08.006ISI: 000454377700017Scopus ID: 2-s2.0-85052945327OAI: oai:DiVA.org:kth-241216DiVA, id: diva2:1280347
Note

QC 20190118

Available from: 2019-01-18 Created: 2019-01-18 Last updated: 2019-01-18Bibliographically approved

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