Shadow price approach in estimating marginal abatement cost of carbon dioxide emissions in OPEC members in the Gulf States

Alishiri, Hadieh; Taklif, Atefeh; Amadeh, Hamid; Arbab, Hamidreza; Khademvatani, Asgar; Sajadifar, Seyedhossein

Shadow price approach in estimating marginal abatement cost of carbon dioxide emissions in OPEC members in the Gulf States

Document Type : Original Article

Authors

hadieh alishiri ¹

atefeh taklif ²

hamid amadeh ³

hamidreza arbab ³

asgar khademvatani ⁴

seyedhossein sajadifar ⁵

¹ Graduate of Oil and Gas Economics, Allameh Tabatabaie University

² Faculty of Economy, University of Alameh Tababie, Teharn, Iran

³ Faculty of Economy, University of Alameh Tababie, Tehran, Iran

⁴ Department of Energy Economics and Management. Petroleum University of technology

⁵ Applied Science and Technology University - Karaj Sugar Center

Abstract

Carbon dioxide emissions are known to be one of the major contributors to environmental pollution and climate change, so many researchers have investigated this issue in their studies. In this empirical study, using theoretical discussions and information from OPEC members in the Gulf States, it is attempted to accurately estimate the marginal abatement cost of carbon dioxide emissions and improve the effectiveness of policies by identifying the effective factors. By correctly recognizing the regional differences in terms of supply and demand for environmental services, it can be concluded that to achieve the long-term goals of reducing global emissions, achieving a win-win state between environmental considerations and economic benefits and more effective presence of these countries in world markets, the more efficient the use of such regional plans will be. The results show that Iran has the highest shadow price of $ 3.025 million per ton of carbon dioxide and Kuwait has the lowest shadow price of $ 0.011 million per ton of carbon dioxide Also, Saudi Arabia, Qatar and the UAE have the same shadow price of $ 1.14 million per ton of carbon dioxide.

Keywords

“Shadow price”

“CO2 Emission”

“Directional Distance Function”