A new approach to measuring shadow price: Reconciling engineering and economic perspectives

摘要: Abstract Shadow price is one of the most important pieces information in environmental decision making. Two different approaches—namely, economic and engineering—have been applied to obtain shadow undesirable outputs, while using methodological backgrounds perspectives. The current study proposes a new conceptual framework an estimation model reconcile estimates derived via two approaches. We also suggest mapping rule that incorporates concept abatement level, which basic element engineering approach. As result, proposed generates continuously changing estimates—i.e., comprising curve—based on level. further investigate determinant factors by second-step regression. suggested methodology used carbon emissions South Korean electricity generating plants, thus yielding relevant policy implications.