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Regional-Level Allocation of CO 2 Emission Permits in China: Evidence from the Boltzmann Distribution Method

Yanbin Li (), Zhen Li (), Min Wu (), Feng Zhang () and Gejirifu De ()
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Yanbin Li: School of Economics and Management, North China Electric Power University, Beijing 102206, China
Zhen Li: School of Economics and Management, North China Electric Power University, Beijing 102206, China
Min Wu: School of Economics and Management, North China Electric Power University, Beijing 102206, China
Feng Zhang: School of Economics and Management, North China Electric Power University, Beijing 102206, China
Gejirifu De: School of Economics and Management, North China Electric Power University, Beijing 102206, China

Sustainability, 2018, vol. 10, issue 8, 1-16

Abstract: To achieve the commitment of carbon emission reduction in 2030 at the climate conference in Paris, it is an important task for China to decompose the carbon emission target among regions. In this paper, entropy maximization is brought to inter-provincial carbon emissions allocation via the Boltzmann distribution method, which provides guidelines for allocating carbon emissions permits among provinces. The research is mainly divided into three parts: (1) We develop the CO 2 influence factor, including per capita GDP, per capita carbon emissions, carbon emission intensity and carbon emissions of per unit industrial added value; the proportion of the second industry; and the urbanization rate, to optimize the Boltzmann distribution model. (2) The probability of carbon emission reduction allocation in each province was calculated by the Boltzmann distribution model, and then the absolute emission reduction target was allocated among different provinces. (3) Comparing the distribution results with the actual carbon emission data in 2015, we then put forward the targeted development strategies for different provinces. Finally, suggestions were provided for CO 2 emission permits allocation to optimize the national carbon emissions trading market in China.

Keywords: CO 2 influence factor; Boltzmann distribution; principle of fairness; emission reduction allocation (search for similar items in EconPapers)
JEL-codes: Q Q0 Q2 Q3 Q5 Q56 O13 (search for similar items in EconPapers)
Date: 2018
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