Provincial Carbon Emission Quota Allocation Study in China from the Perspective of Abatement Cost and Regional Cooperation

Qinliang Tan, Jin Zheng, Yihong Ding and Yimei Zhang
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Qinliang Tan: School of Economics and Management, North China Electric Power University, Beijing 102206, China
Jin Zheng: School of Economics and Management, North China Electric Power University, Beijing 102206, China
Yihong Ding: School of Economics and Management, North China Electric Power University, Beijing 102206, China
Yimei Zhang: College of Environmental Science and Engineering, North China Electric Power University, Beijing 102206, China

Sustainability, 2020, vol. 12, issue 20, 1-20

Abstract: To achieve the carbon reduction target, the Chinese government not only requires a quota allocation scheme in line with the current development situation, but also needs to minimize the economic expenditure in the emission reduction work. Therefore, this study integrates the multi-index method and zero-sum gains–data envelopment analysis model to obtain a fair and efficient multi-criteria quota allocation scheme. To ensure the effectiveness of the scheme, the fairness and cost effect of the scheme are quantitatively tested. In addition, regional cooperation factors are introduced into the research framework to providing feasible practical measures. The results show that: (1) After optimization, the eastern region has the largest quota increment, accounting for 45% of the country’s quota. (2) The multi-criteria quota allocation scheme after secondary allocation is a more ideal scheme. The quota scheme not only meets the requirements of fairness and efficiency, but also has lower abatement costs. (3) Regional cooperation should be encouraged by China, especially the eastern region, which can alleviate the reducing emission pressure through cooperation. Although the western region needs to undertake additional emission reduction tasks, it can improve the utilization rate of local renewable resources and be conducive to long-term economic development. These results will provide a reference for China to achieve its carbon reduction targets.

Keywords: carbon emission quota allocation; zero sum gains–data envelopment analysis; abatement cost; slacks-based measure-data envelopment analysis; regional cooperation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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