A new framework for making carbon compensation standards considering regional differences at different scales in China

Abstract

Carbon compensation represents an effective strategy to promote carbon neutrality, address inter-regional inequalities, and support sustainable development. However, existing research on carbon compensation standards often neglects disparities in natural resource endowments and socioeconomic conditions among regions. This study proposes a new framework for making carbon compensation standards that account for regional differences. We explore key factors influencing the Carbon Deficit Index (CDI) and develop carbon compensation standards considering the regional differences of these factors. Carbon compensation amounts are identified and assigned at the three administrative scale: province, city, and county scale in China. The study reveals that between 2000 and 2015, the number of carbon deficit provinces increased from 9 to 21, with a spatial expansion outward from North China as the epicenter. The key factors impacting the CDI include urbanization rate, population, forest area, average annual precipitation, silt content, and soil organic carbon content. By considering regional differences in these key factors, the proposed carbon compensation standards can effectively reduce inter-regional inequalities. These standards can be applied consistently across the three administrative scales. Our findings suggest that carbon compensation standards that take into account regional differences in natural resource endowments，socioeconomic conditions, and payment capacity can enhance the fairness of carbon compensation actions at different scales, providing a valuable reference for the future development of cross-regional carbon compensation policies.