Estimation of marginal abatement costs for undesirable outputs in India's power generation sector: An output distance function approach.



Table A3: Mean Values of Output Distance Function and Shadow Prices Across Years

Year

Model-1

Model-2

Distance Function

Shadow Price
(Rs./tonne)

Distance Function

Shadow Price
(Rs./tonne)

1990-91

0.961592

4492.213

0.973064

2788.97

1991-92

0.961590

4768.077

0.972118

2746.79

1992-93

0.961934

3357.720

0.973692

3679.13

1993-94

0.967121

2445.274

0.972898

1922.71

1994-95

0.971794

3091.220

0.976806

2213.27

1995-96

0.969427

3124.218

0.971137

2327.37

1996-97

0.959193

3714.176

0.961707

2535.19

1997-98

0.979707

3074.603

0.981455

2041.24

1998-99

0.968473

3313.584

0.971292

2187.87

1999-00

0.964824

2717.520

0.967193

1888.36

Overall

0.966916

3380.59

0.972229

2401.99

Note: The values of the shadow price or marginal abatement costs of CO2 abatement are at 1990-91 prices;
The numbers of plants in our study which were seven till 1996-97 increased to nine from the year
1997-98 with the commissioning of two new plants.

33



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