To achieve more precise and regionally adaptive emission control, this study develops a dual-control framework that simultaneously constrains both total carbon emissions and pollutant concentration levels. Regional environmental heterogeneity is incorporated into the dispatch of generating units to balance emission reduction and operational efficiency. Based on this concept, a regional carbon emission allowance allocation model is constructed by integrating ecological pollutant concentration thresholds. A multi-source Gaussian plume dispersion model is further developed to characterize the spatial and temporal distribution of pollutants from coal-fired power units. These pollutant concentration constraints are embedded into an environmental–economic dispatch model of a coupled electricity–hydrogen–carbon system supported by hybrid storage. By optimizing resource use and minimizing environmental damage at the energy-supply stage, the proposed model provides a low-carbon foundation for the entire industrial production cycle. This approach aligns with the sustainable development paradigm by integrating precision environmental management with circular economy principles. Simulation results reveal that incorporating pollutant concentration control can effectively reduce localized environmental pressure while maintaining overall system economy, highlighting the importance of region-specific environmental capacity in enhancing the overall environmental friendliness of the industrial chain.

Multi-criteria carbon emission allowance allocation for liner shipping companies in China: An integrated approach based on composite indicators and zero-sum gains DEA

Economic dispatch strategy of electricity–gas integrated energy system based on paid carbon emission allowance allocation

This paper presents a mathematical approach to analyzing carbon abatement costs and the allocation of carbon emission allowances in China’s industrial sectors. We utilize input–output data from 30 Chinese provinces between 2009 and 2018 to estimate carbon abatement costs by applying the slack-based measure (SBM) efficiency model and its dual form. The SBM model captures inefficiencies and offers a rigorous framework for measuring abatement costs. Using these costs, we develop a centralized allocation data envelopment analysis (DEA) model, which maximizes sectoral benefits through optimal reallocation. This DEA model is formalized as a linear programming problem, with the aim of determining the efficient allocations of carbon allowances while maintaining the system’s economic productivity. Furthermore, we construct intertemporal, interregional, and spatiotemporal allocation DEA models to examine the dynamics of carbon emission allowance allocation over time, space, and combined spatiotemporal dimensions. These models offer insights into the efficiency of carbon markets under varying conditions. Our proposed new mathematical formulations reveal optimal allocation strategies that can balance emission reductions with industrial productivity. This study also provides novel mathematical frameworks for analyzing the carbon allowance distribution and contributions to both the theory and application of mathematical optimization in environmental policy design. Our findings reveal that China’s industrial carbon abatement costs exhibit significant interprovincial and regional differences. Developed provinces with higher levels of industrial development have higher carbon abatement costs, while provinces with less-developed industrial sectors have lower costs. Under the interregional allocation scenario of carbon emission allowances that consider abatement costs, developed provinces have smaller industrial carbon emission reductions, whereas less-developed provinces have larger reductions. In the intertemporal allocation scenario, provinces with larger industrial economies face greater emission reduction tasks. Under the combined interregional and intertemporal allocation scenario, industrial sectors in coastal developed provinces have lower carbon emission reductions, while those in inland less-developed provinces have higher reductions, mirroring the spatial allocation results of carbon emission allowances.

Cooperative operation for multiple virtual power plants considering energy-carbon trading: A Nash bargaining model

The initial allocation of carbon emission allowances is an important component of the carbon market. An equitable, scientific, and operational quota allocation method and quota management system are the cornerstones for ensuring the healthy operation of the carbon market. Owing to the high emissions, simple process, and good data foundation, the pilot and national carbon market in China have initially included the power industry in allowance management and introduced a common and differentiated quota allocation method. In this study, we compared the allowance allocation methods for the power industry and summarized the methods for key issues such as unit classification, correction factor, product measurement, and quota carry-over. We observed that there were concerns, such as lagging issuance time, lack of carry-over provisions, lack of regulatory mechanisms, and imperfect methods, in the first performance cycle of the national carbon market quota allocation. We improved the allowance allocation system for the power industry in the carbon market from the methodological and management perspectives, including establishing a total allowance constraint, clarifying quota carry-over provisions, improving the quota verification method for co-firing units, optimizing correction factors' selection, and introducing a compensatory distribution system in a timely manner.

The construction of carbon market is one of the important means for China to reach the goal of carbon peaking and carbon neutrality, and the allocation of initial carbon emission right quota is the key link in carbon market transaction. At present, the historical method is the commonly used allocation method of initial carbon emission rights in China, and the use of this method is unfair and inefficient. Therefore, this paper proposes an allocation optimization model, selects a number of indicators, and optimizes the allocation of initial carbon emission rights based on the hierarchical analysis method and entropy weight method. Example analysis shows that the allocation optimization model helps to share the carbon emission responsibility and improve the allocation efficiency, realizes the optimal allocation of initial carbon emission rights among industrial sectors, and provides support for the emission reduction of industrial sectors.

An integrated zero-sum game and data envelopment analysis model for efficiency analysis and regional carbon emission allocation

Carbon emission allowance allocation based on a bi-level multi-objective model in maritime shipping

Greenhouse gas emission indicators, energy consumption efficiency, and optimal carbon emission allowance allocation of the EU countries in 2030

Allocation of provincial carbon emission allowances under China's 2030 carbon peak target: A dynamic multi-criteria decision analysis method

A comparative analysis of China's provincial carbon emission allowances allocation schemes by 2030: A resource misallocation perspective

In order to achieve its 2030 carbon emission peak target, China needs to adjust and allocate energy consumption and initial carbon emission allowances for each province in a phased and planned manner. Thus, this study applied an improved dynamic undesirable zero-sum-gains slacks-based-measure (ZSG-SBM) model to evaluate provincial CO2 emission reduction scenarios and energy allocation for 2015–2019 and calculate the optimal allocation values of carbon emission allowances for each province in 2030. The results showed that China’s allocation efficiency values for total energy exhibited rising and then declining trends during 2015–2019 and that most input–output term efficiency values had room for improvement. Furthermore, after four adjustment iterations of the improved dynamic undesirable ZSG-SBM model, the modeled China achieved optimal carbon emission efficiency for the whole country. In the final model, 19 provinces were allowed to increase their carbon emissions in 2030, while the remaining 11 provinces needed to reduce their emissions. The findings of this paper can help regulators to establish fairer and more effective policy solutions to promote regional synergistic emission reduction, achieve the national goal of peak total carbon emissions, and promote the green, coordinated, and sustainable development of China’s economy.

Auction design for the allocation of carbon emission allowances to supply chains via multi-agent-based model and Q-learning

How can national ETS affect carbon emissions and abatement costs? Evidence from the dual goals proposed by China's NDCs

Effects of European emission unit allowance auctions on corporate profitability

Windfall profits in the power sector during phase III of the EU ETS: Interplay and effects of renewables and carbon prices

Analysis of driving factors and allocation of carbon emission allowance in China

How can China achieve its Intended Nationally Determined Contributions by 2030? A multi-criteria allocation of China’s carbon emission allowance

Carbon emission allowance allocation with a mixed mechanism in air passenger transport