{"title":"Can electrification mitigate the marginal cost of carbon emission abatement? Evidence from China","authors":"Hui Chen, Yongqing Wang","doi":"10.1016/j.jup.2024.101883","DOIUrl":null,"url":null,"abstract":"<div><div>Our study assesses the impact of China's electrification rate on the marginal cost of carbon emission abatement. Employing the linear econometric model with squared terms and the spatial Durbin model, we reveal an inverted U-shaped non-linear relationship between electrification and marginal abatement costs of the local and neighboring areas, with the turning point corresponding to an electrification rate of 31.34% and 19.60% respectively. In short, increased electrification helps mitigate marginal abatement costs. Moreover, we also observed that the differences in electricity supply and demand significantly affect the causal relationship between electrification and marginal abatement costs.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"93 ","pages":"Article 101883"},"PeriodicalIF":3.8000,"publicationDate":"2025-01-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Utilities Policy","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0957178724001772","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ENERGY & FUELS","Score":null,"Total":0}
引用次数: 0
Abstract
Our study assesses the impact of China's electrification rate on the marginal cost of carbon emission abatement. Employing the linear econometric model with squared terms and the spatial Durbin model, we reveal an inverted U-shaped non-linear relationship between electrification and marginal abatement costs of the local and neighboring areas, with the turning point corresponding to an electrification rate of 31.34% and 19.60% respectively. In short, increased electrification helps mitigate marginal abatement costs. Moreover, we also observed that the differences in electricity supply and demand significantly affect the causal relationship between electrification and marginal abatement costs.
期刊介绍:
Utilities Policy is deliberately international, interdisciplinary, and intersectoral. Articles address utility trends and issues in both developed and developing economies. Authors and reviewers come from various disciplines, including economics, political science, sociology, law, finance, accounting, management, and engineering. Areas of focus include the utility and network industries providing essential electricity, natural gas, water and wastewater, solid waste, communications, broadband, postal, and public transportation services.
Utilities Policy invites submissions that apply various quantitative and qualitative methods. Contributions are welcome from both established and emerging scholars as well as accomplished practitioners. Interdisciplinary, comparative, and applied works are encouraged. Submissions to the journal should have a clear focus on governance, performance, and/or analysis of public utilities with an aim toward informing the policymaking process and providing recommendations as appropriate. Relevant topics and issues include but are not limited to industry structures and ownership, market design and dynamics, economic development, resource planning, system modeling, accounting and finance, infrastructure investment, supply and demand efficiency, strategic management and productivity, network operations and integration, supply chains, adaptation and flexibility, service-quality standards, benchmarking and metrics, benefit-cost analysis, behavior and incentives, pricing and demand response, economic and environmental regulation, regulatory performance and impact, restructuring and deregulation, and policy institutions.