The shadow price of CO emissions in China's iron and steel industry.

As China becomes the world's largest energy consumer and CO emitter, there has been a rapidly emerging literature on estimating China's abatement cost for CO using a distance function approach. However, the existing studies have mostly focused on the cost estimates at macro levels (provinces or industries) with few examining firm-level abatement costs. No work has attempted to estimate the abatement cost of CO emissions in the iron and steel industry.