IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v9y2017i11p2122-d119248.html
   My bibliography  Save this article

A Study of the Allocation of Carbon Emission Permits among the Provinces of China Based on Fairness and Efficiency

Author

Listed:
  • Huiqin Jiang

    (College of Politics and Public Administration, Zhejiang University of Technology, Hangzhou 310023, China
    Center for Green Low-Carbon Development Research, Zhejiang University of Technology, Hangzhou 310023, China
    College of Economics and Management, Zhejiang University of Technology, Hangzhou 310023, China)

  • Xinxiao Shao

    (College of Politics and Public Administration, Zhejiang University of Technology, Hangzhou 310023, China)

  • Xiao Zhang

    (College of Politics and Public Administration, Zhejiang University of Technology, Hangzhou 310023, China)

  • Jianqiang Bao

    (College of Politics and Public Administration, Zhejiang University of Technology, Hangzhou 310023, China
    Center for Green Low-Carbon Development Research, Zhejiang University of Technology, Hangzhou 310023, China)

Abstract

Carbon emissions trading systems are implemented to limit the total quantity of carbon emitted. Such trading systems are the main policy tool used by countries worldwide to address climate change. The initial allocation of carbon emission permits is the starting point of a carbon emissions trading system, and it represents the core of such a system. The provinces of China differ in terms of their population, stage of development, economic level, energy structure and industrial structure. Thus, performing the initial allocation of carbon emission permits among the provinces is a key difficulty. This paper focuses on the initial allocation of carbon emission permits among the provinces of China from the perspective of fairness and constructs a model of the initial inter-provincial allocation of carbon emission permits. In addition, a data envelopment analysis (DEA) model including undesirable outputs is used to optimize the resulting fair distribution from the perspective of efficiency.

Suggested Citation

  • Huiqin Jiang & Xinxiao Shao & Xiao Zhang & Jianqiang Bao, 2017. "A Study of the Allocation of Carbon Emission Permits among the Provinces of China Based on Fairness and Efficiency," Sustainability, MDPI, vol. 9(11), pages 1-17, November.
  • Handle: RePEc:gam:jsusta:v:9:y:2017:i:11:p:2122-:d:119248
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/9/11/2122/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/9/11/2122/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ralf Martin & Mirabelle Muûls & Ulrich J. Wagner, 2016. "The Impact of the European Union Emissions Trading Scheme on Regulated Firms: What Is the Evidence after Ten Years?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 10(1), pages 129-148.
    2. Dallas Burtraw & David A. Evans, 2009. "Tradable rights to emit air pollution ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(1), pages 59-84, January.
    3. Stefano Clò, 2009. "The effectiveness of the EU Emissions Trading Scheme," Climate Policy, Taylor & Francis Journals, vol. 9(3), pages 227-241, May.
    4. Oestreich, A. Marcel & Tsiakas, Ilias, 2015. "Carbon emissions and stock returns: Evidence from the EU Emissions Trading Scheme," Journal of Banking & Finance, Elsevier, vol. 58(C), pages 294-308.
    5. Rui Xie & Chao Gao & Guomei Zhao & Yu Liu & Shengcheng Xu, 2017. "Empirical Study of China’s Provincial Carbon Responsibility Sharing: Provincial Value Chain Perspective," Sustainability, MDPI, vol. 9(4), pages 1-16, April.
    6. Frank Convery, 2009. "Origins and Development of the EU ETS," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 43(3), pages 391-412, July.
    7. Jong, Thijs & Couwenberg, Oscar & Woerdman, Edwin, 2014. "Does EU emissions trading bite? An event study," Energy Policy, Elsevier, vol. 69(C), pages 510-519.
    8. Baochen Yang & Chuanze Liu & Yunpeng Su & Xin Jing, 2017. "The Allocation of Carbon Intensity Reduction Target by 2020 among Industrial Sectors in China," Sustainability, MDPI, vol. 9(1), pages 1-19, January.
    9. Karen Palmer & Dallas Burtraw & Danny Kahn, 2006. "Simple rules for targeting CO 2 allowance allocations to compensate firms," Climate Policy, Taylor & Francis Journals, vol. 6(4), pages 477-493, July.
    10. Zetterberg, Lars, 2014. "Benchmarking in the European Union Emissions Trading System: Abatement incentives," Energy Economics, Elsevier, vol. 43(C), pages 218-224.
    11. Jun Dong & Yu Ma & Hongxing Sun, 2016. "From Pilot to the National Emissions Trading Scheme in China: International Practice and Domestic Experiences," Sustainability, MDPI, vol. 8(6), pages 1-17, May.
    12. Hu, Jing & Crijns-Graus, Wina & Lam, Long & Gilbert, Alyssa, 2015. "Ex-ante evaluation of EU ETS during 2013–2030: EU-internal abatement," Energy Policy, Elsevier, vol. 77(C), pages 152-163.
    13. Marc VIELLE & Laurent VIGUIER & Alain HAURIE & Alain BERNARD, 2010. "A Two-level Computable Equilibrium Model to Assess the Strategic Allocation of Emission Allowances Within the European Union," EcoMod2004 330600153, EcoMod.
    14. Xiong, Ling & Shen, Bo & Qi, Shaozhou & Price, Lynn & Ye, Bin, 2017. "The allowance mechanism of China’s carbon trading pilots: A comparative analysis with schemes in EU and California," Applied Energy, Elsevier, vol. 185(P2), pages 1849-1859.
    15. Groenenberg, Heleen & Phylipsen, Dian & Blok, Kornelis, 2001. "Differentiating commitments world wide: global differentiation of GHG emissions reductions based on the Triptych approach--a preliminary assessment," Energy Policy, Elsevier, vol. 29(12), pages 1007-1030, October.
    16. Böhringer, Christoph & Dijkstra, Bouwe & Rosendahl, Knut Einar, 2014. "Sectoral and regional expansion of emissions trading," Resource and Energy Economics, Elsevier, vol. 37(C), pages 201-225.
    17. Wei, Chu & Ni, Jinlan & Du, Limin, 2012. "Regional allocation of carbon dioxide abatement in China," China Economic Review, Elsevier, vol. 23(3), pages 552-565.
    18. Bohringer, Christoph & Lange, Andreas, 2005. "On the design of optimal grandfathering schemes for emission allowances," European Economic Review, Elsevier, vol. 49(8), pages 2041-2055, November.
    19. Yi, Wen-Jing & Zou, Le-Le & Guo, Jie & Wang, Kai & Wei, Yi-Ming, 2011. "How can China reach its CO2 intensity reduction targets by 2020? A regional allocation based on equity and development," Energy Policy, Elsevier, vol. 39(5), pages 2407-2415, May.
    20. Zhang, Da & Karplus, Valerie J. & Cassisa, Cyril & Zhang, Xiliang, 2014. "Emissions trading in China: Progress and prospects," Energy Policy, Elsevier, vol. 75(C), pages 9-16.
    21. Tone, Kaoru, 2001. "A slacks-based measure of efficiency in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 130(3), pages 498-509, May.
    22. Wei, Yi-Ming & Wang, Lu & Liao, Hua & Wang, Ke & Murty, Tad & Yan, Jinyue, 2014. "Responsibility accounting in carbon allocation: A global perspective," Applied Energy, Elsevier, vol. 130(C), pages 122-133.
    23. Clò, Stefano, 2010. "Grandfathering, auctioning and Carbon Leakage: Assessing the inconsistencies of the new ETS Directive," Energy Policy, Elsevier, vol. 38(5), pages 2420-2430, May.
    24. Claudia Kettner & Angela Köppl & Stefan P. Schleicher & Gregor Thenius, 2008. "Stringency and distribution in the EU Emissions Trading Scheme: first evidence," Climate Policy, Taylor & Francis Journals, vol. 8(1), pages 41-61, January.
    25. Venmans, Frank, 2012. "A literature-based multi-criteria evaluation of the EU ETS," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(8), pages 5493-5510.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wen Jiang & Li Yuan & Lanjun Wu & Shiyue Guo, 2019. "Carbon emission reduction and profit distribution mechanism of construction supply chain with fairness concern and cap-and-trade," PLOS ONE, Public Library of Science, vol. 14(10), pages 1-23, October.
    2. Linghong Zhang & Bowen Xue & Xiyu Liu, 2018. "Carbon Emission Reduction with Regard to Retailer’s Fairness Concern and Subsidies," Sustainability, MDPI, vol. 10(4), pages 1-28, April.
    3. Jiekun Song & Rui Chen & Xiaoping Ma, 2021. "Collaborative Allocation of Energy Consumption, Air Pollutants and CO 2 Emissions in China," Sustainability, MDPI, vol. 13(16), pages 1-17, August.
    4. Song, Yazhi & Liu, Tiansen & Liang, Dapeng & Li, Yin & Song, Xiaoqiu, 2019. "A Fuzzy Stochastic Model for Carbon Price Prediction Under the Effect of Demand-related Policy in China's Carbon Market," Ecological Economics, Elsevier, vol. 157(C), pages 253-265.
    5. Yong Bian & Zhi Yu & Xuelan Zeng & Jingchun Feng & Chao He, 2018. "Achieving China’s Long-Term Carbon Emission Abatement Targets: A Perspective from Regional Disparity," Sustainability, MDPI, vol. 10(11), pages 1-19, November.
    6. Tang, Ling & Wang, Haohan & Li, Ling & Yang, Kaitong & Mi, Zhifu, 2020. "Quantitative models in emission trading system research: A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 132(C).
    7. Feng Xiong & Xiaoyu Zeng & Yi (Fionna) Xie & Yan Li, 2022. "Design (Allocation) of a Carbon Emission System—A Lesson from Power Restrictions in Zhejiang, China," Sustainability, MDPI, vol. 14(19), pages 1-31, September.
    8. Linghong Zhang & Hao Zhou & Yanyan Liu & Rui Lu, 2018. "The Optimal Carbon Emission Reduction and Prices with Cap and Trade Mechanism and Competition," IJERPH, MDPI, vol. 15(11), pages 1-23, November.
    9. Jianguo Zhou & Yushuo Li & Xuejing Huo & Xiaolei Xu, 2019. "How to Allocate Carbon Emission Permits Among China’s Industrial Sectors Under the Constraint of Carbon Intensity?," Sustainability, MDPI, vol. 11(3), pages 1-21, February.
    10. Xin-gang Zhao & Yu-zhuo Zhang, 2018. "The System Dynamics (SD) Analysis of the Government and Power Producers’ Evolutionary Game Strategies Based on Carbon Trading (CT) Mechanism: A Case of China," Sustainability, MDPI, vol. 10(4), pages 1-18, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Baochen Yang & Chuanze Liu & Yunpeng Su & Xin Jing, 2017. "The Allocation of Carbon Intensity Reduction Target by 2020 among Industrial Sectors in China," Sustainability, MDPI, vol. 9(1), pages 1-19, January.
    2. Zhou, P. & Wang, M., 2016. "Carbon dioxide emissions allocation: A review," Ecological Economics, Elsevier, vol. 125(C), pages 47-59.
    3. Minxing Jiang & Bangzhu Zhu & Julien Chevallier & Rui Xie, 2018. "Allocating provincial CO2 quotas for the Chinese national carbon program," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(3), pages 457-479, July.
    4. Jiang, Jingjing & Xie, Dejun & Ye, Bin & Shen, Bo & Chen, Zhanming, 2016. "Research on China’s cap-and-trade carbon emission trading scheme: Overview and outlook," Applied Energy, Elsevier, vol. 178(C), pages 902-917.
    5. Chia-Lin Chang & Michael McAleer, 2019. "Modeling Latent Carbon Emission Prices for Japan: Theory and Practice," Energies, MDPI, vol. 12(21), pages 1-21, November.
    6. Venmans, Frank, 2012. "A literature-based multi-criteria evaluation of the EU ETS," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(8), pages 5493-5510.
    7. Yidan Chen & Yuwei Sun & Can Wang, 2018. "Influencing Factors of Companies’ Behavior for Mitigation: A Discussion within the Context of Emission Trading Scheme," Sustainability, MDPI, vol. 10(2), pages 1-15, February.
    8. Joltreau, Eugénie & Sommerfeld, Katrin, 2016. "Why does emissions trading under the EU ETS not affect firms' competitiveness? Empirical findings from the literature," ZEW Discussion Papers 16-062, ZEW - Leibniz Centre for European Economic Research.
    9. Baochen Yang & Chuanze Liu & Zehao Gou & Jiacheng Man & Yunpeng Su, 2018. "How Will Policies of China’s CO 2 ETS Affect its Carbon Price: Evidence from Chinese Pilot Regions," Sustainability, MDPI, vol. 10(3), pages 1-26, February.
    10. Yue Dai & Nan Li & Rongrong Gu & Xiaodong Zhu, 2018. "Can China’s Carbon Emissions Trading Rights Mechanism Transform its Manufacturing Industry? Based on the Perspective of Enterprise Behavior," Sustainability, MDPI, vol. 10(7), pages 1-16, July.
    11. Laura Rodríguez-Fernández & Ana Belén Fernández Carvajal & María Bujidos-Casado, 2020. "Allocation of Greenhouse Gas Emissions Using the Fairness Principle: A Multi-Country Analysis," Sustainability, MDPI, vol. 12(14), pages 1-15, July.
    12. Chen, Anping & Groenewold, Nicolaas, 2015. "Emission reduction policy: A regional economic analysis for China," Economic Modelling, Elsevier, vol. 51(C), pages 136-152.
    13. Idiano D’Adamo, 2018. "The Profitability of Residential Photovoltaic Systems. A New Scheme of Subsidies Based on the Price of CO 2 in a Developed PV Market," Social Sciences, MDPI, vol. 7(9), pages 1-21, August.
    14. Sato, Misato & Rafaty, Ryan & Calel, Raphael & Grubb, Michael, 2022. "Allocation, allocation, allocation! The political economy of the development of the European Union Emissions Trading System," LSE Research Online Documents on Economics 115431, London School of Economics and Political Science, LSE Library.
    15. Wang, Xu & Zhu, Lei & Fan, Ying, 2018. "Transaction costs, market structure and efficient coverage of emissions trading scheme: A microlevel study from the pilots in China," Applied Energy, Elsevier, vol. 220(C), pages 657-671.
    16. Zhang, Xiaoliang & Zheng, Xiaojia, 2024. "Does carbon emission trading policy induce financialization of non-financial firms? Evidence from China," Energy Economics, Elsevier, vol. 131(C).
    17. Koch, Nicolas & Basse Mama, Houdou, 2019. "Does the EU Emissions Trading System induce investment leakage? Evidence from German multinational firms," Energy Economics, Elsevier, vol. 81(C), pages 479-492.
    18. Zhang, Yue-Jun & Wang, Ao-Dong & Tan, Weiping, 2015. "The impact of China's carbon allowance allocation rules on the product prices and emission reduction behaviors of ETS-covered enterprises," Energy Policy, Elsevier, vol. 86(C), pages 176-185.
    19. Marcin Rabe & Dalia Streimikiene & Yuriy Bilan, 2019. "EU Carbon Emissions Market Development and Its Impact on Penetration of Renewables in the Power Sector," Energies, MDPI, vol. 12(15), pages 1-20, August.
    20. Yongrok Choi & Yanni Yu & Hyoung Seok Lee, 2018. "A Study on the Sustainable Performance of the Steel Industry in Korea Based on SBM-DEA," Sustainability, MDPI, vol. 10(1), pages 1-15, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:9:y:2017:i:11:p:2122-:d:119248. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.