RT info:eu-repo/semantics/article
T1 Measuring the CO 2 shadow price for wastewater treatment: A directional distance function approach
A1 Molinos-Senante, María
A1 Hanley, Nick
A1 Sala-Garrido, Ramón
AB The estimation of the value of carbon emissions has become a major research and policy topic since theestablishment of the Kyoto Protocol. The shadow price of CO2 provides information about the marginalabatement cost of this pollutant. It is an essential element in guiding environmental policy issues, sincethe CO2 shadow price can be used when fixing carbon tax rates, in environmental cost-benefit analysisand in ascertaining an initial market price for a trading system. The water industry could play an important role in the reduction of greenhouse gas (GHG) emissions. This paper estimates the shadow price ofCO2 for a sample of wastewater treatment plants (WWTPs), using a parametric quadratic directional distance function. Following this, in a sensitivity analysis, the paper evaluates the impact of different settings of directional vectors on the shadow prices. Applying the Mann–Whitney and Kruskal–Wallisnon-parametric tests, factors affecting CO2 prices are investigated. The variation of CO2 shadow pricesacross the WWTPs evaluated argues in favour of a market-based approach to CO2 mitigation as opposedto command-and-control regulation. The paper argues that the estimation of the shadow price of CO2 fornon-power enterprises can provide incentives for reducing GHG emissions.
SN 0306-2619
YR 2015
FD 2015
LK https://uvadoc.uva.es/handle/10324/64557
UL https://uvadoc.uva.es/handle/10324/64557
LA spa
NO Applied Energy, 2015, vol.144, p. 241–249.
DS UVaDOC
RD 25-nov-2024