Allocation Model of Carbon Emission Permits for the Electric Power Industry with a Combination Subjective and Objective Weighting Approach

Xianxian Pan, Hong Liu, Jiajia Huan, Yu Sui and Haifeng Hong
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Xianxian Pan: Grid Planning & Research Center, Guangdong Power Grid Corporation, Guangzhou 510080, China
Hong Liu: Tianjin University, Tianjin 300072, China
Jiajia Huan: Grid Planning & Research Center, Guangdong Power Grid Corporation, Guangzhou 510080, China
Yu Sui: Grid Planning & Research Center, Guangdong Power Grid Corporation, Guangzhou 510080, China
Haifeng Hong: Grid Planning & Research Center, Guangdong Power Grid Corporation, Guangzhou 510080, China

Energies, 2020, vol. 13, issue 3, 1-12

Abstract: The electric power industry plays a vital role in carbon emissions reduction efforts. The initial allocation of carbon emission permits to the electric power industry is the key to ensuring the effective operation of the carbon trading market. In this study, the multiple correlated factors that affect the carbon emission permit allocation system were extracted. Then, based on the experts’ knowledge and experience, the subjective weight of each index was determined using an improved analytic hierarchy process. Subsequently, the indices were mapped using an improved entropy weight method, and the objective weight of each index was adaptively determined. Finally, the comprehensive weight of each index was determined by optimizing the combination of its subjective and objective weights, and an allocation model of carbon emission permits for the electric power industry was established. A case study of a province by comparative simulation was performed. The simulation results showed that compared with conventional allocation schemes that consider single factors, the theoretical estimates obtained using the proposed model more objectively reflected the actual situation of carbon emissions reduction permits and responsibilities in the region.

Keywords: carbon emission permits; allocation model; electric power industry; analytic hierarchy process; entropy weight method (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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