Co-benefits and influencing factors exploration of air pollution and carbon reduction in China: Based on marginal abatement costs

This study addresses the pressing need for cost-effective emission reduction strategies that maximize co-benefits in terms of air pollution and carbon emissions. Our research contributes to the literature by accurately measuring these co-benefits, thereby facilitating their prompt realization in different regions. We employ an input-output framework that integrates carbon emissions and air pollution, allowing us to calculate marginal abatement costs using the shadow price of undesired output. Through this approach, we quantify the co-benefits and analyze the factors influencing them at both spatiotemporal and factor levels using spatial kernel density and geographical detectors. Our findings reveal several key insights: (1) under joint emission reduction efforts, we observe average annual reduction rates of 6.46% for marginal pollution and 6.10% for carbon reduction costs. Importantly, we document an increase in co-benefits from 0.50 to 0.86, characterized by an initial fluctuation followed by a linear increase. (2) the marginal cost difference for carbon emission and pollution reduction in western China was 179.45 and 155.08 respectively, compared to 321.51 and 124.70 in the Northeast, highlighting the crucial role of regional differences in shaping co-benefit outcomes. (3) we identify a negative spatial spillover effect between provinces, which diminishes over time, leading to heterogeneous effects when local provincial co-benefits exceed a threshold of 0.9. (4) during the adjustment period, we find that the industrial structure exerts significant single and interactive effects on co-benefits. Additionally, we highlight the critical role of environmental governance investment and government intervention as drivers of co-benefits in the current era. By offering the quantification of co-benefits under the marginal abatement costs, our study provides valuable scientific insights for planning and implementing effective synergy strategies.