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Optimal production resource reallocation for CO2 emissions reduction in manufacturing sectors

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  • Fujii, Hidemichi
  • Managi, Shunsuke

Abstract

To mitigate the effects of climate change, countries worldwide are advancing technologies to reduce greenhouse gas emissions. This paper proposes and measures optimal production resource reallocation using data envelopment analysis. This research attempts to clarify the effect of optimal production resource reallocation on CO2 emissions reduction, focusing on regional and industrial characteristics. We use finance, energy, and CO2 emissions data from 13 industrial sectors in 39 countries from 1995 to 2009. The resulting emissions reduction potential is 2.54 Gt-CO2 in the year 2009, with former communist countries having the largest potential to reduce CO2 emissions in the manufacturing sectors. In particular, basic material industry including chemical and steel sectors have a lot of potential to reduce CO2 emissions.

Suggested Citation

  • Fujii, Hidemichi & Managi, Shunsuke, 2015. "Optimal production resource reallocation for CO2 emissions reduction in manufacturing sectors," MPRA Paper 64703, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:64703
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    3. Daniel Armeanu & Georgeta Vintilă & Jean Vasile Andrei & Ştefan Cristian Gherghina & Mihaela Cristina Drăgoi & Cristian Teodor, 2018. "Exploring the link between environmental pollution and economic growth in EU-28 countries: Is there an environmental Kuznets curve?," PLOS ONE, Public Library of Science, vol. 13(5), pages 1-28, May.
    4. Paunić, Alida, 2016. "Brazil, Preservation of Forest and Biodiversity," MPRA Paper 71462, University Library of Munich, Germany.
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    6. Md. Wahid Murad & Md. Mahmudul Alam & Md. Mazharul Islam, 2018. "Dynamics of Japan’s industrial production and carbon emissions: causality, long-term trend and implications," Letters in Spatial and Resource Sciences, Springer, vol. 11(2), pages 127-139, July.
    7. Fabio de Oliveira Neves & Arlinda de Jesus Rodrigues Resende & Plinio Rodrigues dos Santos Filho & Breno Regis Santos, 2023. "Analysis of the Profile of the Greenhouse Gas Emissions in Brazil," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 16(4), pages 135-135, July.
    8. Surender Kumar & Rakesh Kumar Jain, 2021. "Cost of CO2 emission mitigation and its decomposition: evidence from coal-fired thermal power sector in India," Empirical Economics, Springer, vol. 61(2), pages 693-717, August.
    9. Hui Li & Kangyin Dong & Renjin Sun & Jintao Yu & Jinhong Xu, 2017. "Sustainability Assessment of Refining Enterprises Using a DEA-Based Model," Sustainability, MDPI, vol. 9(4), pages 1-15, April.
    10. Khalil Nimer & Muath Abdelqader & Cemil Kuzey & Ali Uyar, 2024. "Emission targeting and carbon emissions: The moderating effect of female directors," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3480-3504, May.
    11. Chu, Junfei & Shao, Caifeng & Emrouznejad, Ali & Wu, Jie & Yuan, Zhe, 2021. "Performance evaluation of organizations considering economic incentives for emission reduction: A carbon emission permit trading approach," Energy Economics, Elsevier, vol. 101(C).
    12. Rakesh Kumar Jain & Surender Kumar, 2018. "Shadow price of CO2 emissions in Indian thermal power sector," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(4), pages 879-902, October.
    13. Fujii, Hidemichi & Cao, Jing & Managi, Shunsuke, 2016. "Firm-level environmentally sensitive productivity and innovation in China," Applied Energy, Elsevier, vol. 184(C), pages 915-925.
    14. Carminati, Hudson Bolsoni & Milão, Raquel de Freitas D. & de Medeiros, José Luiz & Araújo, Ofélia de Queiroz F., 2019. "Bioenergy and full carbon dioxide sinking in sugarcane-biorefinery with post-combustion capture and storage: Techno-economic feasibility," Applied Energy, Elsevier, vol. 254(C).
    15. Koji Kotani & Makoto Kakinaka, 2017. "Some implications of environmental regulation on social welfare under learning-by-doing of eco-products," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 19(1), pages 121-149, January.
    16. Sheng Dai & Natalia Kuosmanen & Timo Kuosmanen & Juuso Liesio, 2023. "Optimal resource allocation: Convex quantile regression approach," Papers 2311.06590, arXiv.org.
    17. Shunsuke Managi & George Halkos, 2015. "Production analysis in environmental, resource, and infrastructure evaluation," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 4(1), pages 1-4, December.
    18. Du, Juan & Xu, Yanhong & Wang, Yi, 2023. "How to improve sustainability for industrial sectors: Optimizing production scales based on performance-oriented resource reallocation," Energy Economics, Elsevier, vol. 119(C).
    19. Zaiwu Gong & Xiaoqing Chen, 2017. "Analysis of Interval Data Envelopment Efficiency Model Considering Different Distribution Characteristics—Based on Environmental Performance Evaluation of the Manufacturing Industry," Sustainability, MDPI, vol. 9(12), pages 1-25, November.
    20. Tamaki, Tetsuya & Shin, Kong Joo & Nakamura, Hiroki & Fujii, Hidemichi & Managi, Shunsuke, 2018. "Shadow prices and production inefficiency of mineral resources," Economic Analysis and Policy, Elsevier, vol. 57(C), pages 111-121.
    21. Ahmed Hassanein & Ahmed Bani-Mustafa & Khalil Nimer, 2024. "A country’s culture and reporting of sustainability practices in energy industries: does a corporate sustainability committee matter?," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.
    22. Alexander Otto & Martin Robinius & Thomas Grube & Sebastian Schiebahn & Aaron Praktiknjo & Detlef Stolten, 2017. "Power-to-Steel: Reducing CO 2 through the Integration of Renewable Energy and Hydrogen into the German Steel Industry," Energies, MDPI, vol. 10(4), pages 1, April.
    23. Hana Nielsen & Astrid Kander, 2020. "Trade in the Carbon-Constrained Future: Exploiting the Comparative Carbon Advantage of Swedish Trade," Energies, MDPI, vol. 13(14), pages 1-25, July.
    24. Takayabu, Hirotaka, 2020. "CO2 mitigation potentials in manufacturing sectors of 26 countries," Energy Economics, Elsevier, vol. 86(C).
    25. Fukuyama, Hirofumi & Liu, Hui-hui & Song, Yao-yao & Yang, Guo-liang, 2021. "Measuring the capacity utilization of the 48 largest iron and steel enterprises in China," European Journal of Operational Research, Elsevier, vol. 288(2), pages 648-665.

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    More about this item

    Keywords

    Resource reallocation; CO2 emissions; Data envelopment analysis; Manufacturing sector;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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