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Evaluating Regional Carbon Inequality and Its Dependence with Carbon Efficiency: Implications for Carbon Neutrality

Jingyu Ji and Hang Lin ()
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Jingyu Ji: School of Data Science, Fudan University, Shanghai 200433, China
Hang Lin: Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, Urbana, IL 61801, USA

Energies, 2022, vol. 15, issue 19, 1-35

Abstract: This paper proposes a novel regional carbon emission inequality (RCI) index based on a special kind of general distribution. Using the proposed RCI index and based on China’s county-level panel data over the time span of 1997–2017, the regional carbon emission inequality of China is evaluated at intra-provincial, sub-national, and national levels. Based on that, the dependence between regional carbon inequality and carbon efficiency is studied by using copula functions and nonlinear dependence measures. The empirical results show that: (1) Shanghai, Tianjin, and Inner Mongolia have the worst carbon inequalities; while Hainan, Qinghai, and Jiangxi are the three most carbon-equal provinces; (2) there is a divergence phenomenon in RCI values of municipalities over the past decade; (3) from the national-level perspective, the inter-provincial carbon emission inequality is much greater than that at the intra-provincial level; (4) from the sub-national-level perspective, the east region has the highest RCI value, followed by the northeast, west, and the central regions; (5) there is a so-called "efficiency-equality (E-E) trade-off" in each provincial administrative unit, meaning that the higher carbon efficiency generally comes with higher carbon inequality, i.e., carbon efficiency comes at a price of carbon inequality; and (6) by re-grouping provincial units via the efficiency-equality cost and industrial structure, respectively, both carbon equality and carbon efficiency can be achieved in some regions simultaneously, thereby getting out of the “E-E trade-off” dilemma. The empirical evidence may provide valuable insight regarding the topic of “equality and efficiency” in environmental economics, and offer policy implications for regional economic planning and coordination.

Keywords: carbon emission; regional carbon inequality; carbon efficiency; carbon neutrality; asymmetric distribution; nonlinear dependence (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: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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