Horizontal CO 2 Compensation in the Yangtze River Delta Based on CO 2 Footprints and CO 2 Emissions Efficiency

Luwei Wang, Yizhen Zhang, Qing Zhao, Chuantang Ren, Yu Fu and Tao Wang ()
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Luwei Wang: School of Geographical Sciences, Nanjing Normal University, Nanjing 210023, China
Yizhen Zhang: School of Geographical Sciences, Nanjing Normal University, Nanjing 210023, China
Qing Zhao: School of Geographical Sciences, Nanjing Normal University, Nanjing 210023, China
Chuantang Ren: School of Geographical Sciences, Nanjing Normal University, Nanjing 210023, China
Yu Fu: School of Tourism and Urban Management, Jiangxi University of Finance and Economics, Nanchang 330013, China
Tao Wang: School of Geographical Sciences, Nanjing Normal University, Nanjing 210023, China

IJERPH, 2023, vol. 20, issue 2, 1-23

Abstract: Purpose: In this study, we attempted to reduce the negative economic externalities related to Carbon Dioxide (CO 2 ) emissions in the Yangtze River Delta region (YRD) and designed a cross-municipality responsibility-sharing mechanism. Methods: We estimated the municipal CO 2 footprints in the YRD from 2000 to 2019 based on nighttime light data and measured CO 2 emissions efficiency using a super slack-based measurement (super-SBM) model. Based on this, we designed a scenario of horizontal CO 2 compensation among the YRD’s municipalities from the perspectives of both CO 2 footprints and CO 2 trading (CO 2 unit prices in trading were determined based on CO 2 emissions efficiency). Results: The results showed the following: (1) The CO 2 footprints evolution of the YRD municipalities could be divided into four categories, among which, eleven municipalities showed a decreasing trend. Thirteen municipalities stabilized their CO 2 footprints. Thirteen municipalities exhibited strong growth in their CO 2 footprints, whereas four municipalities maintained a low level of slow growth. (2) Spatially, CO 2 emissions efficiency evolved from a broad distribution of low values to a mosaic distribution of multi-type zones. (3) After 2011, the ratio of CO 2 footprint compensation amounts to local Gross Domestic Product (GDP) in most municipalities was less than 0.01%, with its center of gravity shifting cyclically. It was appropriate to start charging the CO 2 footprint compensation amounts after 2011, with a dynamic adjustment of 3 years. (4) After 2007, the supply–demand relationship of CO 2 trading continued to deteriorate, and it eased in 2016. However, its operational mechanism was still very fragile and highly dependent on a few pioneering municipalities. Innovations: In this study, we designed a horizontal CO 2 compensation mechanism from the binary perspective of CO 2 footprints and CO 2 trading. In this mechanism, the former determines the CO 2 footprint compensation amounts paid by each municipality based on whether the CO 2 footprint exceeds its CO 2 allowance. The latter determines the CO 2 trading compensation amounts paid by the purchasing municipalities based on their CO 2 emissions efficiency. This system balances equity and efficiency and provides new ideas for horizontal CO 2 compensation.

Keywords: CO 2 footprints; CO 2 emissions efficiency; CO 2 trading; horizontal CO 2 compensation (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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