Marginal abatement costs of carbon dioxide in China: A nonparametric analysis

The estimates of abatement costs about CO2 can provide useful information for policy-makers. With the framework of production theory, a marginal abatement costs model is established using the nonparametric method, and empirical results about China in 2007 are found in this paper. The two CO2 reduction strategies, maintaining the level of CO2 or reducing CO2 and expanding GDP at the same time, impact potential GDP greatly. 143.5 millions CO2 reduction means 35.1billions GDP loss and the marginal abatement cost of CO2 is 475.3yuan/ton on average.