Abstract
With the increasingly severe global environment and climate change, the growing social attention toward the environmental problems has prompted local governments to make policy adjustments. The formulation of the carbon emission right allocation scheme is important for policy-makers. Many researchers have studied the problem of carbon emission right allocation by using data envelopment analysis (DEA) models. However, the existing literature using traditional models consider each Decision-Making Unit (DMU) as a “black box” without taking the internal structure into account, but in fact, it is more accurate for formulating the scheme when considering the inner operation of DMUs. This paper investigates the allocation plan of carbon emission right among each province in China from 2007–2016 based on a two-stage DEA model. The results indicate that, first, there is no space for carbon emission in the north, northeast, and northwest from 2007–2016, while in the southern regions, it always exists. In addition, the carbon emission permits of the southern and eastern regions are increasing, but in the southwestern regions, the carbon emission space barely fluctuated during this decade. Second, the potential of carbon emission reduction of each region tends to be stable after 2014, and in the north and northwest, it fluctuated greatly from 2007–2016. Besides, the northwest region has had the potential of emission reduction since 2010, while it also exists in the northern region after 2014.
Highlights
Growing social concerns about the environment with the increasingly severe global environment and climate change are pushing the local government to make policy adjustments [1]
It is more accurate for formulating the scheme when considering the inner operation of Decision-Making Unit (DMU)
∑ vixij i=1 ur, vi ≥ 0, ∀r = 1, 2, . . . , s; i = 1, 2, . . . , m where ur and vi are unknown weights attached to the rth output and ith input, respectively, and the optimal objective function θd is defined as the BCC efficiency score of DMUd; where u0 > 0 represents increasing return to scale, u0 < 0 represents decreasing return to scale, and u0 = 0 represents constant return to scale
Summary
Growing social concerns about the environment with the increasingly severe global environment and climate change are pushing the local government to make policy adjustments [1]. As one of the largest energy consumption and CO2 emission countries [2,3], China has shown its determination to actively deal with the problem of climate change. At the end of 2017, the Chinese government announced the launch of a nationwide carbon trading market to achieve energy conservation and emission reduction targets. In the process of policy implementation, policymakers need to encourage provinces to achieve emission reduction targets, and have to avoid disturbing market order [7]. Under the circumstances of the fixed amount of carbon emission right, how to formulate a reasonable and effective scheme of carbon emission right allocation is urgently needed based on the development and the amount of actual carbon emission of each province
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