scholarly journals A Study of the Feasibility of International ETS Cooperation between Shanghai and Korea from Environmental Efficiency and CO2 Marginal Abatement Cost Perspectives

2019 ◽  
Vol 11 (16) ◽  
pp. 4468 ◽  
Author(s):  
Chao Qi ◽  
Yongrok Choi
Keyword(s):  
Power Plants ◽  
Stochastic Frontier Analysis ◽  
Market Price ◽  
Abatement Cost ◽  
Environmental Efficiency ◽  
Marginal Abatement Cost ◽  
Cross Sectional ◽  
Frontier Analysis ◽  
The Impact ◽  
Feed In Tariff

With the worldwide spread of emissions trading schemes (ETSs) and the need for international cooperation on climate change, there is growing interest in linking ETSs. Along with sustainable development, preventing and controlling pollution, is now regarded as an urgent priority by China and Korea. In the context of the willingness of the Chinese and Korean governments to cooperate on ETS, this paper examines the feasibility of a pilot ETS cooperation between Shanghai and Korea from environmental efficiency and CO2 marginal abatement cost (MAC) perspectives. We apply a directional distance function (DDF) and stochastic frontier analysis (SFA) to estimate the environmental efficiency and the CO2 MAC of coal-fueled power plants in Shanghai and Korea using cross-sectional data from 2015. The results indicate that the group frontier environmental efficiency of Shanghai and Korea reached a similarly high score. However, as to meta-frontier environmental efficiency, the coal-fueled power plants in Korea performed better than those in Shanghai. The CO2 MAC results indicate that, despite the small gap in efficiency performance, the CO2 MAC of coal-fueled power plants is much higher than that in Shanghai due to the big feed-in tariff difference. This is because the MAC not only relates to the environmental efficiency, but also to the feed-in tariff. A higher feed-in tariff leads to higher MAC. To tackle this serious problem, which has also been addressed in previous studies, we suggest that policymakers should focus on the huge CO2 MAC differences caused by feed-in tariff differences to avoid equity problems when building the structure of the Shanghai-Korea ETS cooperation. For instance, compared with power plants in Shanghai, policymakers should set a looser cap and a higher offset for Korean plants. To reduce the impact of feed-in tariff on carbon trading in the market, it would also be effective to arrange a higher quota or a lower carbon tax for coal-fueled power plants in Korea. In addition, policymakers should fill the gaps of 85.15% and 67.6% between the realistic market price and the MAC results of coal-fueled power plants in Shanghai and Korea, respectively, by introducing stricter regulations.

The Effects of Improved Cassava Variety Adoption on Farmers’ Technical Efficiency in Indonesia

2021 ◽  
Vol 11 (4) ◽  
pp. 269-278
Author(s):  
Syafrial ◽  
Hery Toiba ◽  
Moh Shadiqur Rahman ◽  
Dwi Retnoningsih
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Probit Regression ◽  
Cross Sectional ◽  
Factors Affecting ◽  
Frontier Analysis ◽  
Access To Credit ◽  
Farm Work ◽  
The Impact

The adoption of technological innovations, such as an improved variety, has been widely promoted worldwide to improve agricultural productivity. This study aimed to examine factors affecting farmers’ decision to adopt a new improved cassava varieties (NICV), and to estimate the effects of NICV adoption on farmers’ technical efficiency. This research used cross-sectional data from 300 cassava farmers in East Java, Indonesia. Furthermore, the data were analyzed by probit regression to examine factors affecting farmers’ decision to adopt NICV. Propensity score matching (PSM) procedures and stochastic frontier analysis were applied to evaluate the impact of NICV adoption on farmers’ technical efficiency. The results indicated that adoption was highly influenced by cooperative membership, access to credit, internet access, certified land, and off-farm work. The stochastic frontier analysis, by controlling the matched sample using PSM procedures, demonstrated that NICV adoption positively and significantly impacted farmers’ technical efficiency. Those who adopted NICV showed a higher technical efficiency level than those who did not. This finding implies that improved varieties could be further promoted to increase productivity. The research suggests that there is a need to improve NICV adoption to increase the levels of technical efficiency and productivity.

scholarly journals Is South Korea’s Emission Trading Scheme Effective? An Analysis Based on the Marginal Abatement Cost of Coal-Fueled Power Plants

2019 ◽  
Vol 11 (9) ◽  
pp. 2504 ◽  
Author(s):  
Choi ◽  
Qi
Keyword(s):  
Power Plants ◽  
Stochastic Frontier Analysis ◽  
Carbon Tax ◽  
Supply And Demand ◽  
Market Price ◽  
Emission Trading ◽  
Green Economy ◽  
Resource Saving ◽  
Frontier Analysis ◽  
Trading Scheme

This paper examines not only the effectiveness of the South Korean emissions-trading scheme (ETS), but also the determinants of its performance. We apply a directional distance function and stochastic frontier analysis method to estimate environmental efficiency and the marginal CO2 abatement costs for 50 coal-fueled power plants from 2008 to 2016. The result indicates that the efficiency differs between the Lee Myung-bak and Park Geun-hye administration periods, with performance in the former period being relatively more effective than in the latter. Meanwhile, there were price gaps of 57.98% and 72.76% in 2015 and 2016, respectively, between the realized carbon market price and our result, indicating significant suppressed pressure on the market. We conclude that the Korean government should strengthen its regulations to more effectively implement a green economy. Policymakers could impose a carbon tax; substantially decrease the carbon emissions-free quota; and provide more incentives, especially to the energy-intensive, resource-saving coal-fueled power plants. This would ultimately keep market prices within a reasonable range and achieve a balance between the supply and demand for carbon emission allowances in the market.

On the Impact of Innovation on the Marginal Abatement Cost Curve

2008 ◽  
Vol 10 (6) ◽  
pp. 985-1010 ◽  
Author(s):  
RABAH AMIR ◽  
MARC GERMAIN ◽  
VINCENT VAN STEENBERGHE
Keyword(s):  
Abatement Cost ◽  
Marginal Abatement Cost ◽  
Cost Curve ◽  
Marginal Abatement Cost Curve ◽  
The Impact

scholarly journals International R&D Spillovers and Innovation Efficiency

2018 ◽  
Vol 10 (11) ◽  
pp. 3974 ◽  
Author(s):  
Jianping Liu ◽  
Kai Lu ◽  
Shixiong Cheng
Keyword(s):  
Capital Stock ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Sensitivity Analyses ◽  
Frontier Analysis ◽  
Country Level ◽  
Scientific Papers ◽  
Catch Up ◽  
The Right ◽  
The Impact

The objective of this study is to examine the impact of international research and development (R&D) spillovers on innovation efficiency of specific R&D outcomes, employing the country-level panel data for 44 countries in the 1996–2013 period. Fully considering the heterogeneity of different R&D outputs, scientific papers, PCT (Patent Cooperation Treaty) patents, US patents, and domestic patents are observed separately, which enriches the angles of measuring international R&D spillovers. By applying a stochastic frontier analysis to knowledge production function, we find that foreign R&D capital stock positively contributes to the innovation efficiency of scientific papers, but suppresses the productivity of domestic patents, whereas it does not really matter for PCT or US patents. These results are robust to control for a set of institutional factors and also in sensitivity analyses. Hence, dependence on international R&D spillovers seems neither to be the right way for emerging economies to catch up, nor to be a sustainable model for developing countries to fill the technical gap. Local R&D capital stock, instead, keeps an essential contributor to all four R&D outputs, so raising internal R&D expenditure is actually the key to improving innovation level and sustainable development ability.

Intellectual capital: a determinant of firms' operational efficiency

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kanishka Gupta ◽  
T.V. Raman
Keyword(s):  
Intellectual Capital ◽  
Stochastic Frontier Analysis ◽  
Stock Exchange ◽  
Stochastic Frontier ◽  
Value Added ◽  
Financial Sector ◽  
Operational Efficiency ◽  
Content Type ◽  
Frontier Analysis ◽  
The Impact

PurposeIntellectual capital (IC) has been recognized in improving the efficiency of businesses and gaining competitive edge in the developed world. The present study offers perspectives into the effect of IC on the efficiency of the Indian financial sector companies.Design/methodology/approachFor the purpose of evaluating efficiency, the research has used stochastic frontier analysis (SFA). All Indian financial sector companies listed in National Stock Exchange (NSE-500) for the timeframe of ten years (2008–2018) have been considered. The paper has employed modified Pulic's Value Added Intellectual Coefficient (VAICTM) as a proxy to measure IC. Correlation and panel data regression have been used in order to examine the relationship.FindingsThe results of the study indicate positive and significant relationship between IC and efficiency of the firm. The results also show that all the components of IC, that is, human capital, relational capital, process capital and capital employed have a significant impact on firms' efficiency. Additionally, it has been seen that sample companies do not invest in research and development leading to no innovation capital.Practical implicationsThe research will assist managers in managing and controlling the IC, investors in matters related to investment and financial experts in improving the company's IC and value creation.Originality/valueThe current research is one of the pioneering studies in the context of Indian financial sector that examines the impact of modified VAIC on operational efficiency calculated using SFA.

scholarly journals The Impact of Urbanization on Farmland Productivity: Implications for China’s Requisition–Compensation Balance of Farmland Policy

Land ◽  
2020 ◽  
Vol 9 (9) ◽  
pp. 311 ◽  
Author(s):  
Zhongqi Deng ◽  
Qianyu Zhao ◽  
Helen X. H. Bao
Keyword(s):  
Labor Force ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Agricultural Labor ◽  
Frontier Analysis ◽  
Conservation Policies ◽  
Use Efficiency ◽  
Urbanization Rate ◽  
Impact Of Urbanization ◽  
The Impact

The rapid growth of China’s economy since the reform in 1978 should be largely attributed to urbanization. Nonetheless, in terms of farmland productivity, urbanization may lead to perverse incentives and thus threaten food security. On the one hand, the requisition–compensation balance of farmland (RCBF) policy could reduce farmland productivity because of a “superior occupation and inferior compensation”; on the other hand, urbanization promotes the transfer of the younger labor force and thus reduces the productivity of the agricultural labor force. To investigate the undesirable effects, based on some stylized facts, this study selects 29,415 county-level samples in a Chinese county from 2000–2014 to construct an empirical model. With a new stochastic frontier analysis method that eliminates the classical econometric issues of endogeneity and heterogeneity, the empirical results show that there is a U-shaped relationship between the farmland use efficiency (productivity) and urbanization rate, indicating that only when the urbanization rate is relatively low would urbanization decrease the farmland use efficiency; in contrast, when the urbanization rate is relatively high, technical progress would obviously be accompanied by urbanization, and thus, the undesirable effects are fully offset. Furthermore, the U-shaped relationship is robust after considering the endogeneity of the urbanization rate and total-factor farmland use efficiency. With these findings, recommendations to implement sustainable management and conservation policies regarding farmland resources are made.

scholarly journals Marginal Abatement Cost Curves for Water Scarcity Mitigation under Uncertainty

2019 ◽  
Vol 33 (12) ◽  
pp. 4335-4349 ◽  
Author(s):  
Karin Sjöstrand ◽  
Andreas Lindhe ◽  
Tore Söderqvist ◽  
Peter Dahlqvist ◽  
Lars Rosén
Keyword(s):  
Water Scarcity ◽  
Abatement Cost ◽  
Hot Water ◽  
Marginal Abatement Cost ◽  
Mitigation Measures ◽  
Cost Curve ◽  
Effective Measure ◽  
Trade Offs ◽  
Cost Curves ◽  
The Impact

Abstract As water scarcity and drought become more common, planning to avoid their consequences becomes crucial. Measures to prevent the impact of new climate conditions are expected to be extensive, costly and associated with major uncertainties. It is therefore necessary that policymakers and practitioners in both the public and private sector can compare possible mitigation measures in order to make economically rational investment decisions. For this to be successful, decision-makers need relevant decision support. This paper presents a novel approach of constructing marginal abatement cost curves for comparing water scarcity mitigation measures while taking the underlying uncertainties into account. Uncertainties in input variables are represented by probability distributions and calculations are performed using Monte Carlo simulations. This approach is applied on the island of Gotland, one of the most water-stressed parts of Sweden, to provide the first marginal abatement cost curve in Europe for water scarcity mitigation in which municipal, agricultural, industrial and household measures are compared. The results show that the agricultural measure of on-farm storage has the greatest potential to increase water availability on the island. Among municipal measures, increased groundwater extraction and desalination offer the greatest potential, although desalination is almost 25 times more costly per cubic meter. The most cost-effective measure is linked to hot water savings in the hotel industry. The approach presented provides a quantitative visualization of the financial trade-offs and uncertainties implied by different mitigation measures. It provides critical economic insights for all parties concerned and is thus an important basis for decision-making.

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