Publication

This paper investigates the technical inefficiency, shadow price and substitution elasticity of China's CO2 emissions for 2001-2010. The authors show that China’s technical inefficiency increased over this period of time, implying further scope for CO2 emissions reduction. The results of their investigation not only reveal increases in the shadow price of CO2 abatement, but also an increasingly steep substitution elasticity which highlights the difficult reality of reducing CO2 emissions in China.