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Carbon Emission Control Policies Within China’S Power Generation Sector, Zhenyu Zhang, Karina Schoengold

Department of Agricultural Economics: Faculty Publications

The paper examines the potential for emissions control policy using the example of the power generation sector in China. The analytical model is developed using a joint production function, where carbon emissions and electricity are jointly produced using capital and fossil fuel inputs. Abatement of emissions can be achieved by investment in two types of capital – production capital that improves the production efficiency, or abatement capital that removes the emissions. The analytical model shows that economic growth can be achieved while still keeping the emission stock at a stable level. The results are estimated using data from China’s electricity …