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

Estimation of Marginal Abatement
Costs for Undesirable Outputs in
India’s Power Generation Sector:

An Output Distance Function
Approach

Introduction

Power sector in India is one of the largest emitters of carbon
dioxide in the country accounting for about 38.61 percent of the total CO2
emissions in the year 1997-98 (refer to Table 1 below). The main reason
for such a high share is its heavy reliance upon coal, which is the largest
source of CO2 emissions in the world. About 79.9 percent of the total
power generation by the utilities in the country in the year 1997-98 was
from coal (GoI, 1998). In addition, the coal burnt in the thermal power
plants in the country is of inferior quality, which is responsible for an even
higher level of pollution.

Table 1: Carbon Dioxide Emissions in India (mn t CO₂)

Source: Derived from Energy Balance Table using TERI Energy Data Directory
and Yearbook (various years) and IPCC Greenhouse Gas Inventory Reference

Manual.

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