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Marginal Costs of Carbon Dioxide Abatement: Empirical Evidence from Cross-Country Analysis

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  • David Maradan
  • Anatoli Vassiliev

Abstract

This paper examines how the marginal CO2 abatement costs vary throughout stages of economic development, and how these variations may be related to the Environmental Kuznets Curve (EKC) hypothesis. By assuming the existence of a technological link between production of desirable outputs and pollution, shadow prices of carbon emissions are estimated for 76 developing and developed countries. The results show that immediate carbon reductions are more costly in terms of desirable output forgone in the developing economies than in the developed ones. Several interpretations of this finding are finally proposed.

Suggested Citation

  • David Maradan & Anatoli Vassiliev, 2005. "Marginal Costs of Carbon Dioxide Abatement: Empirical Evidence from Cross-Country Analysis," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 141(III), pages 377-410, September.
    • Handle: RePEc:ses:arsjes:2005-iii-4
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    More about this item

    Keywords

    Carbon dioxide emissions; Marginal abatement costs; Environmental Kuznets Curve; Directional distance function;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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