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Assessing the Pollutant Abatement Cost of Greenhouse Gas Emission Regulation: A Case Study of Taiwan’s Freeway Bus Service Industry

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  • Chih Chen

Abstract

The regulation of greenhouse gas emissions is a vital current issue, and the Taiwan government intends to list greenhouse gas as a pollutant by legislating the Greenhouse Gas Reduction Bill (GGBI), which will require industries to reduce greenhouse gas emissions in production processes. To access the magnitudes of influences of this new regulation on industries is an important issue. In this study, we assess and compare the incremental pollutant abatement cost (PAC) of GGBI regulation on Taiwan’s freeway bus service industry in 2008–2010 by applying the data envelopment analysis method with undesirable output variables. If the GGBI is implemented, the average incremental PAC in 2008–2010 are approximately NT$ 69.2 million respectively. In addition, the proportions of incremental PACs associated with GGBI in the aggregated PACs associated with Vehicular Air Pollutant Emission Standards and incremental GGBI regulations are less than 3 %. Copyright Springer Science+Business Media Dordrecht 2015

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  • Chih Chen, 2015. "Assessing the Pollutant Abatement Cost of Greenhouse Gas Emission Regulation: A Case Study of Taiwan’s Freeway Bus Service Industry," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 61(4), pages 477-495, August.
    • Handle: RePEc:kap:enreec:v:61:y:2015:i:4:p:477-495
    DOI: 10.1007/s10640-014-9803-y
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