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Initial carbon quota allocation methods of power sectors: a China case study

Author

Listed:
  • Ru Li

    (Beijing Institute of Technology
    Beijing Institute of Technology
    Collaborative Innovation Center of Electric Vehicles in Beijing)

  • Bao-Jun Tang

    (Beijing Institute of Technology
    Beijing Institute of Technology
    Collaborative Innovation Center of Electric Vehicles in Beijing
    Sustainable Development Research Institute for Economy and Society of Beijing)

Abstract

China intends to launch the national trade system of carbon emissions in 2017. Assigning the initial quotas properly under the fixed overall amount for the power sectors which are the main members contained in the trade system is one of the most difficult and important parts. The purpose of this paper was to achieve a fair allocation as far as possible. After analyzing the carbon emissions from thermal power generation among all 30 provinces in China, this paper sets the mixed quota allocation method which is most proper for each province, taking the survival and development into account. The zero sum gains DEA model (hereinafter referred to as ZSG-DEA) is used to evaluate the efficiency of production with given initial quota. The result indicates that the emissions of power sectors take more than 40 % in all. Moreover, the more the thermal power is, the more emissions would be. The mixed quota allocation method could make 76 % of province be in the status of normal operation. Moreover, the average efficiency of the project reaches 83.38 %; meanwhile, all 30 provinces could reach DEA efficiency by three adjustments of iterations. The project employed in this paper would provide references for policymakers to establish and operate the carbon emissions trading market.

Suggested Citation

  • Ru Li & Bao-Jun Tang, 2016. "Initial carbon quota allocation methods of power sectors: a China case study," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 84(2), pages 1075-1089, November.
    • Handle: RePEc:spr:nathaz:v:84:y:2016:i:2:d:10.1007_s11069-016-2473-z
    DOI: 10.1007/s11069-016-2473-z
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    Cited by:

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    3. Chenpeng Feng & Rong Zhou & Jingjing Ding & Xiangze Xiao & Mingyue Pu, 2023. "A Method for Allocation of Carbon Emission Quotas to Provincial-Level Industries in China Based on DEA," Sustainability, MDPI, vol. 15(3), pages 1-21, February.
    4. Jing-Ming Chen & Biying Yu & Yi-Ming Wei, 2019. "CO2 emissions accounting for the chemical industry: an empirical analysis for China," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 99(3), pages 1327-1343, December.
    5. Tang, Bao-Jun & Li, Ru & Li, Xiao-Yi & Chen, Hao, 2017. "An optimal production planning model of coal-fired power industry in China: Considering the process of closing down inefficient units and developing CCS technologies," Applied Energy, Elsevier, vol. 206(C), pages 519-530.
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    7. Tang, Baojun & Li, Ru & Yu, Biying & An, Runying & Wei, Yi-Ming, 2018. "How to peak carbon emissions in China's power sector: A regional perspective," Energy Policy, Elsevier, vol. 120(C), pages 365-381.
    8. Qian Huang & Qing Feng & Yuan Tian & Li Lu, 2018. "Equilibrium Strategy-Based Optimization Method for Carbon Emission Quota Allocation in Conventional Power Plants," Sustainability, MDPI, vol. 10(9), pages 1-18, September.

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