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Horizontal CO 2 Compensation in the Yangtze River Delta Based on CO 2 Footprints and CO 2 Emissions Efficiency

Author

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  • Luwei Wang

    (School of Geographical Sciences, Nanjing Normal University, Nanjing 210023, China)

  • Yizhen Zhang

    (School of Geographical Sciences, Nanjing Normal University, Nanjing 210023, China)

  • Qing Zhao

    (School of Geographical Sciences, Nanjing Normal University, Nanjing 210023, China)

  • Chuantang Ren

    (School of Geographical Sciences, Nanjing Normal University, Nanjing 210023, China)

  • Yu Fu

    (School of Tourism and Urban Management, Jiangxi University of Finance and Economics, Nanchang 330013, China)

  • Tao Wang

    (School of Geographical Sciences, Nanjing Normal University, Nanjing 210023, China)

Abstract

Purpose: In this study, we attempted to reduce the negative economic externalities related to Carbon Dioxide (CO 2 ) emissions in the Yangtze River Delta region (YRD) and designed a cross-municipality responsibility-sharing mechanism. Methods: We estimated the municipal CO 2 footprints in the YRD from 2000 to 2019 based on nighttime light data and measured CO 2 emissions efficiency using a super slack-based measurement (super-SBM) model. Based on this, we designed a scenario of horizontal CO 2 compensation among the YRD’s municipalities from the perspectives of both CO 2 footprints and CO 2 trading (CO 2 unit prices in trading were determined based on CO 2 emissions efficiency). Results: The results showed the following: (1) The CO 2 footprints evolution of the YRD municipalities could be divided into four categories, among which, eleven municipalities showed a decreasing trend. Thirteen municipalities stabilized their CO 2 footprints. Thirteen municipalities exhibited strong growth in their CO 2 footprints, whereas four municipalities maintained a low level of slow growth. (2) Spatially, CO 2 emissions efficiency evolved from a broad distribution of low values to a mosaic distribution of multi-type zones. (3) After 2011, the ratio of CO 2 footprint compensation amounts to local Gross Domestic Product (GDP) in most municipalities was less than 0.01%, with its center of gravity shifting cyclically. It was appropriate to start charging the CO 2 footprint compensation amounts after 2011, with a dynamic adjustment of 3 years. (4) After 2007, the supply–demand relationship of CO 2 trading continued to deteriorate, and it eased in 2016. However, its operational mechanism was still very fragile and highly dependent on a few pioneering municipalities. Innovations: In this study, we designed a horizontal CO 2 compensation mechanism from the binary perspective of CO 2 footprints and CO 2 trading. In this mechanism, the former determines the CO 2 footprint compensation amounts paid by each municipality based on whether the CO 2 footprint exceeds its CO 2 allowance. The latter determines the CO 2 trading compensation amounts paid by the purchasing municipalities based on their CO 2 emissions efficiency. This system balances equity and efficiency and provides new ideas for horizontal CO 2 compensation.

Suggested Citation

  • Luwei Wang & Yizhen Zhang & Qing Zhao & Chuantang Ren & Yu Fu & Tao Wang, 2023. "Horizontal CO 2 Compensation in the Yangtze River Delta Based on CO 2 Footprints and CO 2 Emissions Efficiency," IJERPH, MDPI, vol. 20(2), pages 1-23, January.
    • Handle: RePEc:gam:jijerp:v:20:y:2023:i:2:p:1369-:d:1033009
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