Analysis on the shadow price of carbon emissions from China's forestry fruit industry-taking peaches as an example

Abstract

The shadow price of carbon emissions can measure the marginal output effect under the carbon emission regulation and is also one of the key indicators to construct a low-carbon development path for production units. Currently, international research on shadow price is focused on the industrial and energy sectors. However, in the context of carbon peaking and carbon neutrality targets in China, the use of shadow price to study the cost of reducing emissions from agricultural production, especially forestry fruit industries, is significant. In this paper, we use a parametric approach to construct the quadratic ambient directional distance function. Using the input-output data of peach, we then calculate the environmental technical efficiency and shadow price of carbon emissions from peach production in Guangxi, Jiangsu, Shandong, and Sichuan provinces, and further estimate the values of green output in each province. The results show that (i) the environmental technology efficiency of peach production in Jiangsu province, located in the coastal plain area of eastern China, is the highest among the four provinces, while that in Guangxi province, located in the hilly area of southeast China, is the lowest. (ii) Guangxi province has the smallest carbon shadow price of peach production among the four provinces, while Sichuan province, located in the mountainous area of southwest China, has the largest. (iii) The green output value of the peach production in Jiangsu province is the highest among the four provinces, and that in Guangxi province is the lowest. In order to effectively reduce carbon emissions in peach production without affecting economic benefits, the paper puts forward the following suggestions: for peach-producing areas in the southeast hills of China, it is necessary to increase the application of green environmental technology while reducing the input of production factors in peach production. For peach-producing areas in the northern plains of China, the input of production factors should be reduced. It is not easy for peach-producing areas in the southwest mountains of China to reduce the input of production factors while increasing the application of green technologies. Finally, for peach-producing areas in China's eastern coastal plain, the implementation of environmental regulations for peach production should be gradual.

Keywords: Carbon emissions; Environmental costs; Environmental technology efficiency; Green output value; Peach industry; Shadow price.