Abatement costs of emissions from burning maize straw in major maize regions of China: Balancing food security with the environment

Lingling Hou, Catherine Keske, Dana Hoag, Tomas Balezentis, Xiaobing Wang
2019 Journal of Cleaner Production  
This paper estimates the shadow price of CO 2 from burning maize straw in the Chinese agricultural sector and explores the related policy implications for decision makers. Using a quadratic directional distance function, we evaluate the production inefficiency and shadow prices of CO 2 reduction for the seven major maize-producing provinces in China for 1996e2014. In general, the efficiency improves over time. Shandong province ranked as the top one with full efficiency considering both
more » ... dering both economic and environmental impacts as of 2014. The mean shadow price for the CO 2 emission was 0.45 yuan/kg (US$75/t), whereas the province-specific shadow prices varied within the interval bounded by 0 and 0.913 yuan/ha (US$152/t). The marginal abatement cost curve was downward-sloped and indicated the need for curbing CO 2 emission in areas exhibiting the highest pollution rates. Given the marginal abatement cost patterns, the transaction costs associated with implementation of the conservation practices (tillage) should not exceed 335 yuan/ha in order to ensure the welfare gains. This governmentprovided payment would compensate farmers for yield reductions in favor of implementing conservation practices that would substantially reduce CO 2 emissions.
doi:10.1016/j.jclepro.2018.10.047 fatcat:fgnehtrqffbdnls5e2hq7gfiry