ABSTRACT
Chapter 3 assesses the CO 2 abatement potential and cost for 29 mainland provinces from 1995 to 2007. It shows that Shandong, Inner Mongolia, Hebei, Henan, Shanxi, and Guizhou account for 47% of overall abatement potential. From the view of abatement cost, the developed regions are associated with higher cost while the developing area has lower cost to control CO 2 emission. Further analysis shows that the abatement potential is positively associated with energy intensity, coal share, technical change and capital per labor, but negatively associated with development level and service sector share. It also suggests there exists a U-shaped curve between per-capita income and abatement cost of CO 2 .
