Shadow Prices of SO2 Abatements for Regions in China

Agricultural and Resources Economics, Vol. 5, No. 2, pp. 59-78, 2008

20 Pages Posted: 30 Apr 2012 Last revised: 1 May 2012

See all articles by Tsz-Yi Ke

Tsz-Yi Ke

affiliation not provided to SSRN

Jin‐Li Hu

National Chiao Tung University

Yang Li

affiliation not provided to SSRN

Yung-Ho Chiu

Soochow University

Date Written: 2008

Abstract

We use the linear programming approach to compute the overall macroeconomic performance and shadow prices of SO2 emission abatements for thirty regions in China during the 1996-2003 period. Our major findings are as follows: On average, the east area is the most efficient and the central area is the most inefficient during these eight years. The average efficiency of those regions with serious acid rain is higher than the others. Shadow price in the west area is the highest, but it is the lowest in the central area. Shadow prices of the regions with serious acid rain are significantly lower than others, implying that the Chinese government should improve the SO2 emission abatement problem in these regions.

Keywords: shadow price, SO2 abatements, output distance function, undesirable output

JEL Classification: Q53

Suggested Citation

Ke, Tsz-Yi and Hu, Jin-Li and Li, Yang and Chiu, Yung-Ho, Shadow Prices of SO2 Abatements for Regions in China (2008). Agricultural and Resources Economics, Vol. 5, No. 2, pp. 59-78, 2008, Available at SSRN: https://ssrn.com/abstract=2047646

Tsz-Yi Ke

affiliation not provided to SSRN ( email )

Jin-Li Hu (Contact Author)

National Chiao Tung University ( email )

No. 1001, Daxue Rd, East District
Hsinchu, 300
Taiwan

HOME PAGE: http://jinlihu.tripod.com

Yang Li

affiliation not provided to SSRN ( email )

Yung-Ho Chiu

Soochow University ( email )

No. 1 Shizi Street
Taipei, Jiangsu 215006
Taiwan

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