#6 – Research on the Industrial Allocation of Carbon Emissions and the Adjustment of Emission Reduction Policies in China: Based on ZSG-DEA Model

Zhijian Yu, Ke Tang, Hongming Zhang, and Lijin Zeng. Research on the Industrial Allocation of Carbon Emissions and the Adjustment of Emission Reduction Policies in China: Based on ZSG-DEA Model. Dynamic Systems and Applications 29 (2020) No. 10, 3004 – 3023

https://doi.org/10.46719/dsa202029106

ABSTRACT.
With the rapid economic development, environmental pollution caused by energy consumption is becoming increasingly prominent. It is urgent and necessary to clarify emission reduction targets and share the responsibility for carbon emission reduction according to the differences among industries. This paper forecasted the input-output variable values of China’s six major industries from 2016 to 2020. Firstly, the original Data Envelopment Analysis (DEA) was used to analyze the initial carbon emission allocation results, and the efficiency was found to be low. According to the Zero-sum Gains DEA (ZSG-DEA) model, the initial carbon emission quota was iteratively optimized to calculate the reasonable carbon emission right allocation result. The results showed that the initial carbon emission efficiency of the six major industries in China was relatively low, and the difference in the efficiency value between the industries was evident. Only the construction industry had realized the effective allocation of the initial carbon emission, while the change amount of the industrial carbon quota was negative after the redistribution, and the emission reduction space was the largest. Accordingly, the end of the paper put forward targeted policy suggestions such as setting up differentiated carbon emission reduction targets among industries, increasing the use of clean energy, improving the carbon emission efficiency and so on.

Keywords: Carbon reduction; Efficiency distribution; Environmental policy; ZSG-DEA; Chinese industry.