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Estimation and allocation of cost savings from collaborative CO2 abatement in China

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  • He, Weijun
  • Yang, Yi
  • Wang, Zhaohua
  • Zhu, Joe

Abstract

As an increasingly accepted way of relieving global warming, collaborative carbon dioxide (CO2) abatement could improve not only emission performance, but also cost-effectiveness of abatement. In this study, we analyze the cost savings and benefits of collaborative abatement in the context of China by using data envelopment analysis (DEA) approach. Specifically, we establish 63 collaborative abatement scenarios by dividing the Mainland China into six main regions, and then estimate the costs savings in each collaboration abatement scenario. Through investigating the gains for each region in various scenarios, the best collaborative partners for each region are suggested from perspectives of benefit maximization. Furthermore, the contribution of each region to collaborative abatement cost saving is also differentiated with the Shapley value approach.

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  • He, Weijun & Yang, Yi & Wang, Zhaohua & Zhu, Joe, 2018. "Estimation and allocation of cost savings from collaborative CO2 abatement in China," Energy Economics, Elsevier, vol. 72(C), pages 62-74.
    • Handle: RePEc:eee:eneeco:v:72:y:2018:i:c:p:62-74
    DOI: 10.1016/j.eneco.2018.03.025
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    Collaborative CO2 abatement; Cost savings; DEA; China;
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