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Correcting the uneven burden sharing of emission reduction across provinces in China

Lin Zhang

Energy Economics, 2017, vol. 64, issue C, 335-345

Abstract: Although China committed to reduce its energy and emission intensity, the allocation of such national targets in the provincial level is still a political negotiation process and lack of a systematic principle from the perspective of efficiency. This paper proposes an allocation principle based on the efficiency levels. The efficiency levels are estimated by employing a stochastic frontier analysis approach and the links between energy intensity and efficiency are constructed. The results show that energy efficiency change is not the major contributor to energy intensity reduction. Furthermore, this analysis indicates that (i) the efficiency-based allocation can distribute reduction burdens among regions smoothly compared to the intensity-based allocation; and (ii) the national target of emission intensity reduction can be achieved solely through efficiency measures.

Keywords: Energy efficiency; Emission reduction allocation; Future outlook; China (search for similar items in EconPapers)
JEL-codes: E27 E61 H70 Q43 Q47 Q48 (search for similar items in EconPapers)
Date: 2017
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Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

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