Target setting and allocation of carbon emissions abatement based on DEA and closest target: an application to 20 APEC economies

Jie Wu (), Jun-Fei Chu and Liang Liang
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Jie Wu: University of Science and Technology of China
Jun-Fei Chu: University of Science and Technology of China
Liang Liang: University of Science and Technology of China

Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, 2016, vol. 84, issue 1, No 17, 279-296

Abstract: Abstract Regarded as an effective method for treating the global warming problem, carbon emissions abatement (CEA) allocation has become a hot research topic and has drawn great attention recently. However, the traditional CEA allocation methods generally set efficient targets for the decision-making units (DMUs) using the farthest targets, which neglects the DMUs’ unwillingness to maximize (minimize) some of their inputs (outputs). In addition, the total CEA level is usually subjectively determined without any consideration of the current carbon emission situations of the DMUs. To surmount these deficiencies, we incorporate data envelopment analysis and its closest target technique into the CEA allocation problem. Firstly, a two-stage approach is proposed for setting the optimal total CEA level for the DMUs. Then, another two-stage approach is given for allocating the identified optimal total CEA among the DMUs. Our approach provides more flexibility when setting new input and output targets for the DMUs in CEA allocation. Finally, the proposed approaches are applied for CEA target setting and allocation for 20 Asia-Pacific Economic Cooperation economies.

Keywords: Carbon emissions abatement; Target setting; Allocation; Data envelopment analysis (DEA); Closest target (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (13)

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DOI: 10.1007/s11069-015-1973-6

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