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The cost-effectiveness of agricultural greenhouse gas reduction under diverse carbon policies in China

Author

Listed:
  • Kai Tang
  • Chunbo Ma

Abstract

Purpose - Mitigating agricultural greenhouse gas (GHG) emissions is an essential part of China's effort to achieve net-zero emissions. This study assesses the cost-effectiveness of China's agricultural GHG reduction under diverse carbon policies. Design/methodology/approach - The study employs a parametric non-radial distance function approach and estimates the technical abatement potential and marginal abatement cost (MAC) of GHG in China's agricultural sector for the 2008–2017 period. Findings - Agriculture is expected to make a great contribution to China's net-zero emissions progress. This study empirically analyses the cost-effectiveness of China's agricultural GHG reduction under diverse carbon policies. A parametric non-radial distance function approach is used to derive technical abatement potential and MAC of GHG for the 2008–2017 period. The results indicate that no significant improvement had been achieved in terms of agricultural GHG reduction in China during 2008–2017. The country's agricultural sector could reduce 20–40% GHG emissions with a mean value of 31%. In general, western provinces have larger reduction potential than eastern ones. The average MAC for the whole country is 4,656 yuan/ton CO2e during 2008–2017. For most western provinces, their MAC values are considerably higher than those for most eastern provinces. Compared with previous sectoral estimates of GHG mitigation cost, this study’s estimates indicate that reducing agricultural GHG emissions in some provinces is likely to be cost-effective. The Chinese government should consider expanding its national carbon market to cover agricultural sector. Practical implications - The Chinese government should consider expanding its national carbon market to cover agricultural sector. Originality/value - Existing studies in the field mostly ignore input constraints, which is inconsistent with carbon mitigation policy practice, especially in the agricultural sector. This study’s approach integrates both input and output constraints reflecting differing policy practice.

Suggested Citation

  • Kai Tang & Chunbo Ma, 2022. "The cost-effectiveness of agricultural greenhouse gas reduction under diverse carbon policies in China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 14(4), pages 758-773, June.
    • Handle: RePEc:eme:caerpp:caer-01-2022-0008
    DOI: 10.1108/CAER-01-2022-0008
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    Citations

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    Cited by:

    1. Feng, Yuan & Chen, Zhi & Nie, Changfei, 2023. "The effect of broadband infrastructure construction on urban green innovation: Evidence from a quasi-natural experiment in China," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 581-598.
    2. Kai Tang, 2022. "The Effect of Left-Behind Women on Fertilizer Use: Evidence from China’s Rural Households Engaging in Rural-Urban Migration," IJERPH, MDPI, vol. 20(1), pages 1-12, December.
    3. Daniel May & Ourania Tremma, 2023. "Effects of Sustainable Regulations at Agricultural International Market Failures: A Dynamic Approach," Sustainability, MDPI, vol. 15(3), pages 1-10, January.
    4. Tang, Kai, 2024. "Agricultural adaptation to the environmental and social consequences of climate change in mixed farming systems: Evidence from North Xinjiang, China," Agricultural Systems, Elsevier, vol. 217(C).
    5. Kai Tang & Qianbo Chen & Weijie Tan & Yi Jun Wu Feng, 2022. "The Impact of Financial Deepening on Carbon Reductions in China: Evidence from City- and Enterprise-Level Data," IJERPH, MDPI, vol. 19(18), pages 1-15, September.

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