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Assessing the marginal abatement costs (MACs) of emissions improves the understanding of the extent of current CO2 mitigation and provides regions and industries with information on how to mitigate emissions cost-effectively. This study proposes a hybrid method to evaluate the MAC. It combines the strengths of bottom-up engineering methods and top-down economy-wide methods. A parametric directional distance function is employed to estimate the MAC from an economic perspective, and the abatement level is further incorporated to generate increasing curves, similar to the outcomes derived from an engineering perspective. In addition, this method takes into consideration whether the abatement level exceeds the abatement potential with current production technologies so as to provide a more realistic estimation of the MAC curves. The proposed technique is applied in estimating the carbon emission MAC in China’s petroleum industry. The estimation results indicate that (i) the MAC of China’s petroleum industry would change from 9821 to 16,307 yuan/ton when the abatement level increases from 1 to 50%; (ii) this industry would spend 36.5 to 42.5 billion Chinese yuan annually to achieve China’s CO2 reduction target proposed in its Intended Nationally Determined Contributions (NDCs); (iii) assigning the CO2 reduction targets based on the estimated MAC curves instead of the traditional grandfathering abatement target assignment would help to save China’s petroleum industry an additional 29.97 to 33.65% in abatement costs when achieving the NDCs. The MAC curves estimated in this study indicate more accurate relationships between abatement levels and abatement costs, and hence provide decision-makers in industries and governments with a more reliable instrument to determine the prices of emissions permits, total abatement costs, and implementation strategies in an emissions trading scheme.

CO 2 emission performance evaluation is crucial to make abatement policies. Knowledge about the potential and costs of CO 2 reduction could provide information guides for policymakers and help them implement targeted measures. However, relevant studies are rarely subdivided into detailed industrial sectors, and results are lack of inter-industry comparisons. To fill this gap, this study estimates provincial technical inefficiency, abatement potential, and shadow price of CO 2 from fuel combustion in China’s 25 industries in 2001–2017. Results show that China’s industry could ideally reduce CO 2 emissions by a further 22.01-33.27%, averaging 1645.96 MtCO 2 . Technical efficiency, abatement potential, and cost vary across provinces and industries and should therefore be fully considered when designing emission reduction targets and control policies. Provinces and industries with low technical efficiency, large-scale emissions, great abatement potential and low shadow price are the key to emission reduction. We thus identify key provinces and industries that need to take on more abatement responsibility. Those findings are of great significance to the formulation of carbon reduction targets and the implementation of abatement policies, and prove the feasibility of China’s trans-regional carbon trading. It is suggested to prioritize key industries into the trading system and further promote inter-provincial cooperation through carbon trading.

Research on construction land use efficiency with carbon emissions provides valuable insights for effective regulation of land use planning and low-carbon development. This study explores construction land use efficiency (CLUE) in China and the USA by employing a slack-based measure (SBM) that incorporates carbon emissions as undesirable output to evaluate CLUE at the provincial/state level. The abatement potential (AP) of construction land use and carbon emissions through the land utilization process are further explored. We find (1) that the average CLUE in China (0.512) is relatively higher than that in the USA, but the CLUE in both countries is at a relatively low level; (2) that carbon emissions, as undesirable output, have a negative impact on CLUE; and (3) that the average AP for construction land is 0.485 in China and 0.696 in the USA, while the average AP for carbon emissions is 0.500 in China and 0.576 in the USA. Understanding these characteristics can lead to better coordination of emissions reduction policies and land use policies to optimize the construction land inputs in both countries, thereby sustaining land use management while reducing carbon emission.

As drivers of climate action, cities are taking measures to reduce greenhouse gas (GHG) emissions, which if left unabated pose a challenge to meeting long-term climate targets. The economics of climate action needs to be at the forefront of climate dialogue to prioritize investments among competing mitigation measures. A marginal abatement cost (MAC) curve is an effective visualization of climate action that initiates a technical and economic discussion of the cost-effectiveness and abatement potential of such actions among local leaders, policy makers, and climate experts. More commonly demonstrated for countries, MAC curves need to be developed for cities because of their heterogeneity, which vary in their urban activities, energy supply, infrastructure stock, and commuting patterns. The methodology for constructing bottom-up MAC curves for cities is presented for technologies that offer fuel switching and/or energy efficiencies, while considering technology lifetimes, city-specific electricity and fuel prices, and emission intensities. Resulting MAC curves are unique to every city, and chart the pathway towards low-carbon growth by prioritizing measures based on cost-effectiveness. A case study of Toronto’s climate targets demonstrates the prioritization of select technologies. Leveraging MAC curves to support climate programs enables cities to strategically invest in financing climate action and designing incentives.

Urbanisation is accelerating under the new economic development trend, but the global warming exacerbated by greenhouse gases has caused a certain degree of constraint on the speed and quality of economic development, among which anthropogenic emissions, mainly from transportation, are more obvious. Therefore, based on the background of urbanisation and taking urban agglomerations as the research object, this study investigates the spatial and temporal mechanisms and dynamics of carbon emissions through the construction of carbon emission models, the identification of influencing factors, and the processing of spatial data and proposes relevant measures for carbon emission control mechanisms. This study finds that the improvement of the per capita economic level and the urbanisation rate will correspondingly lead to an increase in carbon emissions and that the spatial distribution of carbon emissions under passenger and freight transport modes shows a pattern of “low at the ends and high in the middle”, with the predicted carbon emission levels remaining balanced over a long period of time, with a variation rate of less than 1%. The model idea proposed in this study can effectively provide new perspectives and ideas for the differentiated formulation of emission reduction policies, and the government ought to focus more on the dynamic changes of urbanised carbon emissions in future development so as to realise the potential of urban emission reduction.

We assess the physical potential to reduce nutrient loads from waste water treatment plants in the Baltic Sea region and determine the costs of abating nutrients based on the estimated potential. We take a sample of waste water treatment plants of different size classes and generalize its properties to the whole population of waste water treatment plants. Based on a detailed investment and operational cost data on actual plants, we develop the total and marginal abatement cost functions for both nutrients. To our knowledge, our study is the first of its kind; there is no other study on this issue which would take advantage of detailed data on waste water treatment plants at this extent. We demonstrate that the reduction potential of nutrients is huge in waste water treatment plants. Increasing the abatement in waste water treatment plants can result in 70 % of the Baltic Sea Action Plan nitrogen reduction target and 80 % of the Baltic Sea Action Plan phosphorus reduction target. Another good finding is that the costs of reducing both nutrients are much lower than previously thought. The large reduction of nitrogen would cost 670 million euros and of phosphorus 150 million euros. We show that especially for phosphorus the abatement costs in agriculture would be much higher than in waste water treatment plants.

The improvement of the energy and carbon emission efficiency of activities in the building sector is the key to China’s realization of the Paris Agreement. We can explore effective emission abatement approaches for the building sector by evaluating the carbon emissions and energy efficiency of construction activities, measuring the emission abatement potential of construction activities across the country and regions, and measuring the marginal abatement cost (MAC) of China and various regions. This study calculates the energy and carbon emissions performance of the building sector of 30 provinces and regions in China from 2005 to 2015, measures the dynamic changes in the energy-saving potential and carbon emission performance of the building sector, conducts relevant verification, and estimates the MAC of the building sector by using the slacks-based measure-directional distance function. The level of energy consumption per unit of the building sector of China has been decreasing yearly, but the energy structure has changed minimally (considering that clean energy is used). The total factor technical efficiency of the building sector of various provinces, cities, and regions is generally low, as verified in the evaluation of the energy-saving and emission abatement potential of the building sector of China. The energy saving and emission abatement of the building sector of China have great potential—that is, in approximately 50% of the total emissions of the building sector of China. In particular, Northeast and North China account for more than 50% of the total energy-saving and emission abatement potential. The study of the CO2 emissions and MAC of the building sector indicates that the larger the CO2 emissions are, the smaller MAC will be. The emission abatement efficiency is proportional to MAC. Based on this research, it can be more equitable and effective in formulating provincial emission reduction policy targets at the national level, and can maximize the contribution of the building sector of various provinces to the national carbon emission reduction.

Increasing attention has been placed on the evaluation of CO 2 abatement potential at national or sectoral level in China due to its largest energy consumption and carbon emission. However, few studies specialize in estimating provincial carbon reduction potential and its provincial differences. This paper estimates the carbon intensity abatement potential in China at provincial scale by exploring an environmental learning curve (ELC) model for carbon intensity. Per capita GDP, the proportion of the tertiary industry in GDP and energy intensity are selected as three independent variables. Based on the ELC model, the carbon intensity reduction potentials of 30 provinces in 2020 are estimated for business-as-usual and planned scenarios. The results indicate that China’s total intensity abatement potential is 34.22 and 37.64 % in the two scenarios, respectively. For all provinces, energy intensity has the strongest positive learning ability among the three variables. Beijing, Tianjin, Liaoning, Jilin and Shanghai play major roles to cut down carbon emission intensity due to their large reduction potentials. However, the intensity reduction potentials in Qinghai, Ningxia, Xinjiang and Hainan are not obvious.

Water pollution is becoming an increasing threat to China's sustainable development. To respond to this challenge, China has pledged to cut emissions of two major water pollutants, chemical oxygen demand (COD) and ammonia nitrogen (NH4), and has disaggregated the national target among provinces. However, the abatement potential and costs have not been thoroughly assessed. This paper aims to examine the reduction potential and associated costs of COD and NH4 in the Chinese industrial sector. A parametric directional distance function is applied to modeling joint production, in which COD and NH4 are treated simultaneously as byproducts of the production process. Using provincial data from 2003 to 2012, we find that 13.18% of COD and 13.27% of NH4 can be reduced if all provinces perform efficiently. The average abatement cost to cut one additional unit of COD and NH4 is 710 and 7,390 Yuan/kg, respectively. The abatement cost is significantly correlated with the economic development level, pollution intensity and capital-labor ratio. Our results call for a market-based instrument, such as an Emission Trading System, to assist China in achieving this environmental goal in a cost-effective way. Moreover, it will become more difficult and costly to control COD, while there still exists a ‘win-win’ opportunity to control NH4 emissions through efficiency improvements.

As the main source of CO2 emissions in China, the industrial sector has faced pressure for reducing emissions. To achieve the target of 50% reduction of industrial carbon intensity by 2020 based on the 2005 level, it is urgent to formulate specific CO2 emission mitigation strategies in the provincial industrial sector. In order to provide decision-making support for the development and implementation of mitigation policy, our undesirable slack based measure (SBM) model is firstly applied to evaluate the industrial CO2 emission efficiency under total-factor frame (TFICEE) in 13 prefecture-level cities of Jiangsu Province, the largest CO2 emitter in China. Then, we analyze space-time distribution and distributional evolution tendency of TFICEE by using the GIS visualization method and kernel density estimation, respectively. Finally, we utilize the industrial abatement model to estimate the CO2 abatement potential of Jiangsu’s industrial sector. The empirical results show that there exists a significant spatial inequality of TFICEE across various regions in Jiangsu, but the regional disparity has been narrowing during our study period. Additionally, average annual industrial CO2 emission reductions in Jiangsu Province can attain 15,654.00 (ten thousand tons), accounting for 28.2% of its average annual actual emissions, which can be achieved by improving production technology, adjusting industrial structure and raising the level of industry concentration.